5 Best Water Stocks To Buy

2. Xylem Inc. (NYSE:XYL)

Number of Hedge Fund Holders: 40

Xylem Inc. (NYSE:XYL) specializes in designing, manufacturing, and servicing engineered products and solutions for water and wastewater applications globally. The company operates through three segments – Water Infrastructure, Applied Water, and Measurement & Control Solutions. Xylem Inc. (NYSE:XYL) serves residential, commercial, industrial, and critical infrastructure sectors. On November 17, Xylem Inc. (NYSE:XYL) declared a $0.33 per share quarterly dividend. The dividend is payable on December 19, to shareholders of record on November 21. 

According to Insider Monkey’s third quarter database, 40 hedge funds were bullish on Xylem Inc. (NYSE:XYL), compared to 37 funds in the preceding quarter. Anand Parekh’s Alyeska Investment Group is a significant position holder in the company, with 1.93 million shares worth $175.7 million. 

Aristotle Capital Value Equity Strategy made the following comment about Xylem Inc. (NYSE:XYL) in its Q3 2023 investor letter:

“Xylem Inc. (NYSE:XYL), the water equipment and services supplier, was the largest detractor for the quarter. After closing the transformational acquisition of Evoqua in May 2023, long‐time CEO Patrick Decker announced he would retire at the end of 2023 and COO Matthew Pine will step into the top position. Concurrently, Xylem announced a change in its CFO, with William Grogan joining from IDEX Corporation where he has served as CFO since 2017. While C‐suite turnover is not desirable, it is inevitable. Moreover, we see the company’s succession planning as well thought out and well executed. Meanwhile, Xylem reported double‐digit increases in revenue across all segments and end markets amid strong global demand from public utilities, as well as industrial, commercial and residential clients that seek solutions to treat, test, transport and preserve water. We believe Xylem’s portfolio of highly differentiated pumps, recognized for their quality and critical uses, as well as the company’s ability to cross‐sell and link other products such as sensors and smart meters, will make it a one‐stop shop for utilities and protect the company from pure price competition. In our opinion, long‐term trends, such as water scarcity and the need to replace aging water infrastructure, create strong underlying demand for Xylem’s products through various parts of the economic cycle. We will evaluate the announced management transitions and will closely monitor the company’s ongoing integration of Evoqua.”