In a remarkable display of resilience and growth, Zurn Water Solutions Corp (ZWS) stock has soared to a 52-week high, reaching a price level of $38.12. This peak reflects a significant uptrend for the company, which has seen its stock value surge over the past year. Investors have been buoyed by the company's strong performance, as evidenced by the impressive 1-year change data, with Rexnord Corp (NYSE:ZWS), ZWS's parent company, reporting a substantial 33.78% increase. This bullish momentum underscores the market's confidence in ZWS's strategic initiatives and its potential for continued expansion in the water solutions industry.
In other recent news, Zurn Elkay Water Solutions Corporation has demonstrated resilience amidst market challenges, reporting a strong performance in its third quarter 2024 earnings call. The company exceeded its guidance with a 4% core growth and a 9% increase in adjusted EBITDA, leading to a significant margin improvement. Furthermore, Zurn Elkay raised its full-year free cash flow outlook to approximately $260 million and increased its quarterly dividend by 12.5%, indicating confidence in its financial stability and future prospects.
Total (EPA:TTEF) Q3 sales reached $410 million, fueled by growth in non-residential markets, while residential sales remained steady. The company's net debt stands at $308 million, with a leverage ratio of 0.8 times. Looking ahead, Zurn Elkay projects low single-digit core sales growth in Q4 2024 and a strong EBITDA margin of 25% year-to-date.
These recent developments reflect Zurn Elkay's commitment to sustainability and its ability to navigate market complexities. The company anticipates improvement in non-residential construction starts in 2025 and is exploring M&A opportunities that align with its product lines. However, the company remains cautious about market projections until actual conversions from bid quotes to buy quotes occur.
InvestingPro Insights
Zurn Water Solutions Corp's (ZWS) recent stock performance aligns with the data and insights provided by InvestingPro. The company's stock is indeed trading near its 52-week high, with InvestingPro data showing it at 98.85% of its peak. This corroborates the article's mention of ZWS reaching $38.12, a 52-week high.
InvestingPro Tips highlight that ZWS has shown a strong return over the last three months, with data revealing a 25.41% price total return over this period. This robust performance extends to the longer term, with a 31.0% return over the past year, closely matching the 33.78% increase mentioned in the article for Rexnord Corp, ZWS's parent company.
The company's financial health appears solid, with InvestingPro Tips noting that liquid assets exceed short-term obligations and that ZWS operates with a moderate level of debt. This financial stability may be contributing to investor confidence and the stock's upward trajectory.
For readers interested in a deeper dive into ZWS's financials and future prospects, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's position in the water solutions industry.
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