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
Zurn Elkay Water Solutions Corp (ZWS) Stock Analysis
Range Bound setup
Industrials · Pollution & Treatment Controls
Hold if already holding. Not a fresh buy at $48.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Value-trap signals (2/5): High leverage (D/E 3.5), Material insider selling (3 sells, 5.33% of cap).
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
Hold if already holding. Not a fresh buy at $48.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Value-trap signals (2/5): High leverage (D/E 3.5), Material insider selling (3 sells, 5.33% of cap). Chart setup: RSI 45 mid-range, Bollinger mid-band. Downgraded from BUY WAIT — price $48.38 has reached target $48.89. No upside to wait for. Score 6.3/10, moderate confidence.
Passes 4/7 gates (positive momentum, clean insider activity, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-26Recent Developments — Zurn Elkay Water Solutions Corp
Latest news
- NEWS Are you looking for a top momentum pick? Why Zurn Water (ZWS) is a great choice - MSN — MSN positive
- NEWS Zurn Elkay Water Solutions Cor (NYSE:ZWS) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS - MarketBeat — MarketBeat positive
- NEWS Zurn Elkay Water Solutions Corporation (ZWS) Stock Rises on Q1 2026 Earnings - Quiver Quantitative — Quiver Quantitative positive
- NEWS Zurn Elkay (NYSE:ZWS) Surprises With Q1 CY2026 Sales - StockStory — StockStory positive
- NEWS Earnings Flash (ZWS) Zurn Elkay Water Solutions Corporation Reports Q1 Revenue $433.0M, vs. FactSet Est of $418.9M - mar — marketscreener.com positive
Generated 2026-07-26T08:02:05Z.
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.
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Rating Breakdown
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $48.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Value-trap signals (2/5): High leverage (D/E 3.5), Material insider selling (3 sells, 5.33% of cap). Chart setup: RSI 45 mid-range, Bollinger mid-band. Downgraded from BUY WAIT — price $48.38 has reached target $48.89. No upside to wait for. Target $48.89 (+1.1%), stop $43.24 (−11.9%), A.R:R 0.2:1. Score 6.3/10, moderate confidence.
Take-profit target: $48.89 (+1.1% upside). Target $48.89 (+1.1%), stop $43.24 (−11.9%), A.R:R 0.2:1. Stop-loss: $43.24.
Analyst target reached - limited upside remaining; Value-trap signals (2/5): High leverage (D/E 3.5), Material insider selling (3 sells, 5.33% of cap).
Zurn Elkay Water Solutions Corp trades at a P/E of 39.3 (forward 25.1). TrendMatrix value score: 4.3/10. Verdict: Hold.
16 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 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.