Is Zurn Water Solutions (ZWS) a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge SMID Cap Growth Strategy underperformed its Russell 2500 Growth benchmark. On an absolute basis, the Strategy had losses across eight of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT, industrials, consumer discretionary and health care sectors the primary detractors, while the consumer staples and energy sectors were contributors. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments  SMID Cap Growth Strategy mentioned Zurn Water Solutions Corporation (NYSE:ZWS) and explained its insights for the company. Founded in 2006, Zurn Water Solutions Corporation (NYSE:ZWS) is a Wisconsin, United States-based water solutions provider with a $3.7 billion market capitalization. Zurn Water Solutions Corporation (NYSE:ZWS)  delivered a -18.02% return since the beginning of the year, while its 12-month returns are up by 18.10%. The stock closed at $29.84 per share on May 05, 2022.

Here is what ClearBridge Investments  SMID Cap Growth Strategy has to say about Zurn Water Solutions Corporation (NYSE:ZWS) in its Q1 2022 investor letter:

“The Strategy also established a starter position in Zurn Water Solutions (NYSE:ZWS). Zurn is a pure-play water business that came out of Rexnord and is looking to double earnings over the next three to five years. The company has invested heavily in new product and recently acquired Elkay, a manufacturer of sinks and commercial water products.”

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Our calculations show that Zurn Water Solutions Corporation (NYSE:ZWS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Zurn Water Solutions Corporation (NYSE:ZWS) was in 26) hedge fund portfolios at the end of the fourth quarter of 2021, compared to 0 funds in the previous quarter. Zurn Water Solutions Corporation (NYSE:ZWS) delivered a -2.99% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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