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Here's Why Watts Water (WTS) is a Strong Growth Stock

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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Watts Water (WTS)

Headquartered in North Andover, MA, Watts Water Technologies, Inc. designs, manufactures and sells various water safety and flow control products to promote safety, energy efficiency, and water conservation for commercial and residential buildings. The company reports its business under three geographic segments: Americas (70.6% of total revenues in fourth-quarter 2023), Europe (23.4%) and APMEA consisting of Asia-Pacific, the Middle East and Africa (6%).

WTS boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 3% year-over-year for 2024, while Wall Street anticipates its top line to improve by 10%.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.19 to $8.52 per share. WTS also boasts an average earnings surprise of 13.5%.

Watts Water is also cash rich. The company has generated cash flow growth of 12.6%, and is expected to report cash flow expansion of 14.7% in 2024.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, WTS should be on investors' short lists.

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Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report

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Zacks Investment Research