Here’s What Provides Zurn Elkay Water Solutions Corporation (ZWS) a Tailwind to Growth

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets sustained their upward rally from April’s lows, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for further interest rate cuts from the U.S. Federal Reserve. Small-cap stocks mirrored the rally by extending the momentum in the quarter. The Russell 2000® Growth Index was up 12.19% in the quarter, modestly underperforming the Russell 2000 Value Index’s 12.60% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Small Cap Growth Fund highlighted stocks such as Zurn Elkay Water Solutions Corporation (NYSE:ZWS). Headquartered in Milwaukee, Wisconsin, Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is a water management solutions provider. The one-month return of Zurn Elkay Water Solutions Corporation (NYSE:ZWS) was -1.65%, and its shares gained 28.22% of their value over the last 52 weeks. On October 28, 2025, Zurn Elkay Water Solutions Corporation (NYSE:ZWS) stock closed at $46.03 per share, with a market capitalization of $7.712 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Zurn Elkay Water Solutions Corporation (NYSE:ZWS) in its third quarter 2025 investor letter:

“Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is a diversified provider of specification-driven water management solutions. The company has continued to outperform broader non residential construction trends and has navigated the unfolding tariff situation impressively thus far. This performance was on display in the company’s most recent earnings report, which exceeded investor expectations across the board, and the stock reacted accordingly. We see recent new product launches and favorable legislation trends positively affecting Zurn Elkay’s core institutional end markets, providing a nice tailwind to future growth.”

Zurn Elkay Water Solutions Corporation (ZWS): Among Top Insider Sales Last Month

Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Zurn Elkay Water Solutions Corporation (NYSE:ZWS) at the end of the second quarter, compared to 26 in the previous quarter. While we acknowledge the risk and potential of Zurn Elkay Water Solutions Corporation (NYSE:ZWS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Zurn Elkay Water Solutions Corporation (NYSE:ZWS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.