5-Star Stocks Poised to Pop: Xylem

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, water industry equipment specialist Xylem (NYS: XYL) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Xylem's business and see what CAPS investors are saying about the stock right now.

Xylem facts

Headquarters (founded)

White Plains, N.Y. (1995)

Market Cap

$5.2 billion

Industry

Industrial machinery

Trailing-12-Month Revenue

$3.8 billion

Management

CEO Gretchen McClain
CFO Michael Speetzen

Trailing-12-Month Return on Equity

12.3%

Cash/Debt

$318.0 million / $1.2 billion

Dividend Yield

1.4%

Competitors

Flowserve
Pentair
SPX Flow Technology


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, all 44 members who have rated Xylem believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, youngblood58, touched on the strong tailwinds working in Xylem's favor:

Water is our most precious commodity, and yet many people don't realize how commoditized it will become as the world's population explodes and the demand for potable water increases. In fact, it will definitely be a crisis of the 21st Century [in my opinion].

This company is a good "one-stop shop" in terms of water purification, production, distribution, etc. and I am investing in it as a long term strategy.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Xylem may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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