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

$4.5 billion

Industry

Industrial machinery

Trailing-12-Month Revenue

$3.8 billion

Management

CEO Gretchen McClain
CFO Michael Speetzen

Trailing-12-Month Return on Equity

11.7%

Cash/Debt

$358.0 million / $1.2 billion

Competitors

Flowserve
PentairSPX
Flow Technology


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

On CAPS, 96% of the 50 members who have rated Xylem believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, NeuroNerd, succinctly summed up the Xylem bull case for our community:

Trading at a fairly reasonable P/E for an industry that I can only see demand growing for as the world population goes up, up, up and old infrastructure throughout much of the developed world continues to degrade. They also appear to have a big opportunity in treating fracking water waste. ... Leverage is modest ... cash flows aren't too shabby. ... Looks like a buy and hold, hold, hold to me!

If you want market-topping returns, 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 its 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 theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: Xylem originally appeared on Fool.com.

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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