10 Best Industrial Machinery Stocks to Buy Now

4. Xylem Inc. (NYSE:XYL) 

Number of Hedge Fund Holders: 50

Revenue Growth Rate (year-over-year): 33.36%

Xylem Inc. (NYSE:XYL) is one of the world’s top water technology firms. Its broad portfolio includes a variety of water industry equipment and solutions for the transportation, treatment, testing, and effective use of water for public utilities as well as commercial, residential, and industrial clients. The four business segments of Xylem are water solutions and services, measurement and control solutions, applied water, and water infrastructure. With its headquarters in Rye Brook, New York, Xylem employs 16,200 people and is present in more than 150 countries. In 2023, the business brought in $7.4 billion.

Xylem Inc. (NYSE:XYL) achieved solid performance in Q3 2024, with sales of $2.1 billion, up 1% YoY on a reported and organic basis, as a result of an 8% rise in orders, which shows strong demand across the segments. Evoqua’s integration is moving more quickly than expected, which is helping to increase margins and surpass projections. It is anticipated that this calculated action will further support the company’s earnings and growth prospects. Additionally, Xylem Inc. (NYSE:XYL) reported $217 million in net income, with a net income margin that grew to 10.3% due to cost-effectiveness and solid operational performance.

According to Xylem Inc. (NYSE:XYL)’s revised full-year earnings expectations, the company expects to generate $8.5 billion in revenue, a 15% increase over the previous year, with organic revenue growth of roughly 5%. For the entire year, the business anticipates an adjusted EBITDA margin of about 20.5% and a free cash flow conversion to net income of at least 120%.

The company remains confident in its strategic plan, which focuses on long-term and profitable growth.

According to Insider Monkey’s database, Ian Simm’s Impax Asset Management was the company’s largest stakeholder in Q2. It owns 1,677,816 shares worth $226.56 million as of Q2.