Zurn Elkay Water Solutions delivers a perfect 4-for-4 earnings beat streak, a maximum Piotroski F-Score of 9/9, and 129% free cash flow conversion — but the stock has already reached its analyst price target with only 0.2% upside remaining, making the current entry a near-zero reward-to-risk proposition.
Thesis pillars
- Perfect Earnings Beat Fcf Conversion↓Deteriorating
- Maximum Piotroski Score Quality→Stable
- Analyst Target Exhausted Zero Upside→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 9, 2026· older than 90 days
Zurn Elkay Water Solutions Corp (ZWS) Stock Analysis
Temporary headwind edge
Industrials · Pollution & Treatment Controls
Sell if holding. At $43.85, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Sector modifier (Industrials): -0.7.
Zurn Elkay Water Solutions designs and manufactures specification-driven water management products — valves, drainage, filtration, and hygienic fixtures — primarily for North American institutional and commercial construction markets. Products are distributed through... Read more
Sell if holding. At $43.85, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Sector modifier (Industrials): -0.7. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 88d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Nov 2, 2026Recent Developments — Zurn Elkay Water Solutions Corp
Latest news
- NEWS RBC Lowers Price Target on Zurn Elkay Water Solutions to $47 — fiscal.ai Nov 2, 2026 negative
- NEWS How Strong Earnings Will Impact Zurn Elkay Water Solutions Stock (ZWS) - Simply Wall Street — Simply Wall Street Oct 28, 2026 positive
- NEWS Zurn Elkay Water Solutions Reports Q3 2026 Results: EPS of $0.45 Beats Estimates; Revenue Hits $495.1 Million - GuruFocu — GuruFocus Oct 27, 2026 positive
- NEWS Zurn Water (ZWS) Q3 Earnings and Revenues Surpass Estimates - Yahoo Finance — Yahoo Finance Oct 27, 2026 positive
- NEWS Zurn Elkay Water Solutions Q3 Adjusted EPS, Revenue Rise; Sets Q4 Sales Outlook - Yahoo Finance — Yahoo Finance Oct 27, 2026 positive
Latest item Nov 2, 2026 · Generated 2026-11-06T11:48:17Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerlargest customer18%10-K Item 1: 'The Company's largest customer accounted for 18%, 19% and 20% of consolidated net sales for the years ended December 31, 2025, 2024, and 2023, respectively.'
- 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: 'our three largest independent distributors generated approximately 32% of our consolidated net sales with the largest accounting for 18% of consolidated net sales'
Material Events(8-K, last 90d)
- 2026-05-27Item 5.02MEDIUMDavid J. Pauli, CFO of Zurn Elkay since 2012, promoted to COO effective May 27, 2026, vacating the CFO role. No successor CFO identified in filing (body truncated). Pauli continues to report to CEO Todd Adams in the COO capacity.SEC filing →
- 2026-05-01Item 5.02LOWSudhanshu Chhabra, Executive Vice President, Zurn Elkay Business Systems, transitioned to an advisory role effective April 30, 2026. No reason cited; no successor named.SEC filing →
- 2026-05-01Item 5.07LOWZurn Elkay held its 2026 Annual Meeting on April 30, 2026 with 167,542,304 shares eligible to vote. Shareholders elected three directors for three-year terms expiring 2029, approved executive compensation on advisory basis, and ratified Ernst & Young LLP as auditor for FY2026.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $43.85, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Sector modifier (Industrials): -0.7. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $41.60. Score 5.6/10, moderate confidence.
Analyst target: $46.01 (+4.9% upside). Prior stop was $41.60. Stop-loss: $41.60.
Thin upside margin: 4.9%; Sector modifier (Industrials): -0.7; Negative momentum.
Zurn Elkay Water Solutions Corp trades at a P/E of 25.6 (forward 21.5). TrendMatrix value score: 5.3/10. Verdict: Sell.
15 analysts rate ZWS, with a consensus score of 3.8/5. 9 analysts publish price targets averaging $53.
What does Zurn Elkay Water Solutions Corp do?Zurn Elkay Water Solutions designs and manufactures specification-driven water management products — valves, drainage,...
Zurn Elkay Water Solutions designs and manufactures specification-driven water management products — valves, drainage, filtration, and hygienic fixtures — primarily for North American institutional and commercial construction markets. Products are distributed through approximately 1,000 independent sales representatives and wholesalers; the largest single customer accounted for 18% of 2025 consolidated net sales. The company operates 21 principal manufacturing and warehouse facilities, primarily in North America.