Shares of water management solutions company Zurn Elkay (ZWS, Financial) surged 11.07% in the morning session.
The S&P Dow Jones Indices announced the company's addition to the S&P SmallCap 600 index before trading opens on Monday, September 23, 2024. This inclusion usually leads to the stock being held by many mutual funds and ETFs, potentially increasing demand for ZWS stock.
Zurn Elkay Water Solutions Corp (ZWS, Financial) is a key player in the water management sector, offering a range of clean water solutions for drinking water, hygiene, and sustainable water management. As of the latest update, ZWS stock is trading at $33, reflecting an 11.07% increase.
On valuation, the stock is considered "Fairly Valued" with a GF Value of $31.12. For more detailed information, visit the GF Value page. The company's market capitalization stands at $5.64 billion, and its Price-to-Earnings (PE) ratio is 42.31. The stock has a price-to-book (PB) ratio of 3.54 and a dividend yield close to a 3-year high.
While Zurn Elkay has demonstrated strong financial strength with an Altman Z-Score of 3.23 and a Piotroski F-Score of 7, indicating a very healthy situation, it also faces challenges. The company has seen a decline in revenue per share and operating margin over the past five years. Furthermore, its Return on Invested Capital (ROIC) is less than its Weighted Average Cost of Capital (WACC), suggesting potential inefficiencies.
Nevertheless, Zurn Elkay's inclusion in the S&P SmallCap 600 is a positive signal that may boost institutional interest and trading volume, which already saw a significant number of shares traded. The company’s latest quarterly results are expected on October 31, 2024, which will be closely watched by investors.
In short, while ZWS has shown some areas of concern, its recent index addition and robust financial indicators make it a stock worth keeping an eye on.
