Bottom Line:
📊 HOLD: ZWS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$58.17
Based on 7.0% avg growth
INTRINSIC VALUE TODAY
$36.12
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.
Valuation Analysis: ZWS is currently trading at $46.11, which is considered oversold relative to its 30-day fair value range of $46.18 to $47.51. The stock's valuation (Forward PE: 28.1) is in line with its historical norms (28.2). Remarkably, the market is currently pricing in an annual earnings decline of 0.2% over the next few years. This pessimistic expectation contrasts with the company's recent 45.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ZWS is showing sideways momentum. The price is currently testing key support at $45.56. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ZWS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $51.22 (+10.1%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$46.18 -
$47.51
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.8%
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Zurn Elkay Water Solutions Corp designs procures, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The company's product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.