Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see 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 to promote safety, energy efficiency, and water conservation for commercial and residential buildings. The company reports its business under three geographic segments: The Americas (73.6% of total revenues in fourth-quarter 2024), Europe (20.1%) and APMEA consisting of Asia-Pacific, the Middle East and Africa (6.3%).
WTS boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 2.5% year-over-year for 2025, while Wall Street anticipates its top line to improve by 0.1%.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.07 to $9.08 per share. WTS boasts an average earnings surprise of 6.2%.
Looking at cash flow, Watts Water is expected to report cash flow growth of 9.6% this year; WTS has generated cash flow growth of 13.6% 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
This article originally published on Zacks Investment Research (zacks.com).
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