10 Best UK Stocks to Invest in Now

4) Pentair plc (NYSE:PNR)

Number of Hedge Fund Holders: 40

Pentair plc (NYSE:PNR) offers various water solutions in the US, Western Europe, China, Eastern Europe, Latin America, the Middle East, Southeast Asia, Australia, Canada, and Japan. It is headquartered in London, the United Kingdom.

Pentair plc (NYSE:PNR)’s growth momentum is expected to be aided by its ongoing transformation efforts. It has been implementing an 80/20 strategy, focusing on the most profitable products and customers. The US Federal Reserve’s rate cuts are yet to stimulate the company’s rate-sensitive Residential and Pool businesses significantly.

Wall Street believes that the positive effects of the rate cuts will be visible in 6-9 months, potentially acting as a tailwind for Pentair plc (NYSE:PNR) in the coming quarters. A rise in consumer confidence and higher spending on home improvement should boost demand for pool construction, renovation, and maintenance services. This trend is expected to result in increased sales of Pentair plc (NYSE:PNR)’s pool equipment and water treatment products. Furthermore, a strong residential market might lead to cross-selling opportunities for the company’s other product lines, like water filtration systems for homes.

The residential market, which remains critical for the company’s Pool segment, should undergo a cyclical recovery. This expected upturn might fuel demand for Pentair plc (NYSE:PNR)’s products and services, mainly in the pool build and remodel categories. Moving forward, the company’s strategic pricing, operational efficiencies, and diverse product segments are expected to act as tailwinds. Notably, the pricing in the Pool segment has been projected to remain stable despite inflationary pressures.

Pentair plc (NYSE:PNR)’s strategic focus on its water portfolio, together with effective cost management and transformation initiatives, places it well for continued growth. Analysts at Stifel Nicolaus upped their price target on shares of the company from $101.00 to $115.00, giving a “Buy” rating on 16^th October.