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

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

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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 (73.4% of total revenues in first-quarter 2024), Europe (21.6%) and APMEA consisting of Asia-Pacific, the Middle East and Africa (5%).

WTS is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 4.5% year-over-year for the current fiscal year, with sales growth of 9.9%.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.12 to $8.64 per share. WTS also boasts an average earnings surprise of 11.7%.

Looking at cash flow, Watts Water is expected to report cash flow growth of 14.7% this year; WTS has generated cash flow growth of 12.6% over the past three to five years.

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