XYL Stock Analysis: Buy, Sell, or Hold?

XYL - Xylem Inc

PUMPS & PUMPING EQUIPMENT
$137.87
-0.05 (-0.04%) ▼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Feb 10, 2026 9d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
✅ BUY SIGNAL: XYL shows strong fundamentals and good volume confirmation. Solid entry point despite slightly low pricing.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$193.26
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$120.00
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: XYL is currently trading at $137.87, which is considered slightly low relative to its 30-day fair value range of $137.43 to $142.30. The stock's valuation (Forward PE: 24.8) is in line with its historical norms (25.1). Remarkably, the market is currently pricing in an annual earnings decline of 0.3% over the next few years. This pessimistic expectation contrasts with the company's recent 4.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, XYL is in a downtrend. Immediate support is located at $132.36, while resistance sits at $146.55.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $167.18 (+21.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY LOW
Fair Price Range $137.43 - $142.30
Company Quality Score 56/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 79.5%

All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 21.2% below Wall St target ($167.18)

Fair Price Analysis

30-Day Fair Range $137.43 - $142.30
Current vs Fair Value SLIGHTLY LOW

Support & Resistance Levels

Support Level $132.36
Resistance Level $146.55
Current Trend Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 24.83
Wall Street Target $167.18 (+21.2%)
Revenue Growth (YoY) 7.8%
Earnings Growth (YoY) 4.5%
Profit Margin 10.7%
Valuation Discount vs History -0.3% cheaper
PE vs Historical 24.8 vs 25.1 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -0.3% (market-implied from PE analysis)
1-Year Target $137.51 (0%)
2-Year Target $137.09 (-1%)
3-Year Target $136.68 (-1%)
3-Yr Target (if PE normalizes) (PE: 25→25) $138.19 (+0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 24.8, Growth: 9.7%) $182.27 (+32%)
Base: (SPY PE: 22.3, Growth: 9.7%) $163.72 (+19%)
Bear: (PE: 19.0, Growth: 9.7%) $139.16 (+1%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (35x PE), but valuation improves significantly next year (25x PE) as earnings recover.
Trailing PE: 34.93 | Current EPS (TTM): $3.88
Bull Case $213.44 (+55%)
Analyst growth 43.2%, PE expands to 38.4
Base Case $194.03 (+41%)
Market implied 43.2%, PE stable at 34.9
Bear Case $92.15 (-33%)
Severe decline -20.0%, PE contracts to 29.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 24.8 to 25.1
Stabilization Target: $139.44 (+1.1%)
PE Expansion Potential: +1.1%
Last updated: January 31, 2026 1:03 AM ET
Data refreshes hourly during market hours. Next update: 2:03 AM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Geri-Michelle Mcshane SELL 1000 shares 2025-09-05

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Professional options setups generated by AI based on today's XYL price and gamma walls.

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