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Zurn Elkay Water Solutions Corp (ZWS) Stock Analysis

SellModerate Confidence

Industrials · Pollution & Treatment Controls

Sell if holding. Analyst target reached at $48.06 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7.

Zurn Elkay is a pure-play water management company designing and manufacturing specification-driven products—water safety/control, flow systems, hygienic/environmental, and filtered drinking water—for institutional, commercial, and waterworks markets, primarily in North America.... Read more

$48.06+1.8% A.UpsideScore 5.7/10#2 of 5 Pollution & Treatment Controls
QualityF-score9 / 9FCF yield3.43%
IncomeYield0.92%(5y avg 0.86%)Payout32.52%sustainable
Stop $45.75Target $48.91(analyst − 13%)A.R:R 0.4:1
Analyst target$56.22+17.0%9 analysts
$48.91our TP
$48.06price
$56.22mean
$65

Sell if holding. Analyst target reached at $48.06 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 73d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Zurn Elkay Water Solutions Corp

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.1 in RISK_OFF)
Strong earnings beat streak (4/4)
High-quality business
Risks
Analyst target reached - limited upside remaining
Sector modifier (Industrials): -0.7
Negative momentum

Key Metrics

P/E (TTM)39.1
P/E (Fwd)25.0
Mkt Cap$8.1B
EV/EBITDA21.2
Profit Mgn12.3%
ROE13.3%
Rev Growth11.4%
Beta0.86
Dividend0.92%
Rating analysts15

Quality Signals

Piotroski F9/9MoatNarrow

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomertop five customers38%
    10-K Item 1A: 'our top five customers accounted for approximately 38% of our consolidated net sales, with one customer accounting for 18% of consolidated net sales'
  • MEDIUMCustomerthree largest independent distributors32%
    10-K Item 1A: 'In fiscal 2025, our three largest independent distributors generated approximately 32% of our consolidated net sales'

Material Events(8-K, last 90d)

  • 2026-05-01Item 5.02LOW
    Sudhanshu Chhabra, EVP Zurn Elkay Business Systems, transitioned to an advisory role effective April 30, 2026. No reason cited. No successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
1.3
Growth Rank
2.0
Quality Rank
4.5

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
1.3
Ma Position
6.0
Rsi
8.2
Oversold in uptrend (RSI 28)Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.3<4.5A.R:R 0.4 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 73d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
28 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $47.16Resistance $53.76

Price Targets

$46
$49
A.Upside+1.8%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (1.8% upside)
! Momentum score 3.3/10 — below 4.5 minimum
! Reward/Risk 0.4:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-28 (73d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ZWS stock a buy right now?

Sell if holding. Analyst target reached at $48.06 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $45.75. Score 5.7/10, moderate confidence.

What is the ZWS stock price target?

Take-profit target: $48.91 (+1.8% upside). Prior stop was $45.75. Stop-loss: $45.75.

What are the risks of investing in ZWS?

Analyst target reached - limited upside remaining; Sector modifier (Industrials): -0.7; Negative momentum.

Is ZWS overvalued or undervalued?

Zurn Elkay Water Solutions Corp trades at a P/E of 39.1 (forward 25.0). TrendMatrix value score: 4.3/10. Verdict: Sell.

What do analysts say about ZWS?

15 analysts cover ZWS with a consensus score of 3.8/5. Average price target: $56.

What does Zurn Elkay Water Solutions Corp do?Zurn Elkay is a pure-play water management company designing and manufacturing specification-driven products—water...

Zurn Elkay is a pure-play water management company designing and manufacturing specification-driven products—water safety/control, flow systems, hygienic/environmental, and filtered drinking water—for institutional, commercial, and waterworks markets, primarily in North America. Sold through ~1,000 independent sales representatives under the Zurn®, Elkay®, and Wilkins® brands; demand is driven by institutional and commercial construction.

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