Yahoo Finance Here's Why Watts Water (WTS) is a Strong Growth Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
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.
Watts Water (WTS)
Headquartered in North Andover, MA, Watts Water Technologies, Inc. designs, manufactures and sells various water safety and flow control products for the water quality, water conservation, water safety, and water flow control markets. The company reports its business under three geographic segments: Americas (71.7% of total revenues in third-quarter 2022), Europe (23.2%) and APMEA consisting of Asia-Pacific, Middle East and Africa (5.1%).
WTS boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 28.3% year-over-year for 2022, while Wall Street anticipates its top line to improve by 8.6%.
Two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $7.08 per share for 2022. WTS boasts an average earnings surprise of 16.7%.
Looking at cash flow, Watts Water is expected to report cash flow growth of 30% this year; WTS has generated cash flow growth of 10.1% 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
