- Xylem posted positive second quarter results, particularly with respect to strong order growth, but second-half guidance left some questions open.
- Xylem should be in a good position to leverage strong industrial demand for several more quarters, especially from marine, food/beverage, and HVAC, as well as improving commercial demand.
- With the passage of the infrastructure bill, utility demand should accelerate, and Xylem is well-placed to leverage the prioritized spending on improving clean water supplies and digitalization.
- Xylem shares seem untethered from the financials, and this is largely a water infrastructure / smart metering / ESG theme stock.
For further details see:
Investors Are Treating Xylem As If There's Gold In Water Infrastructure