Watts Water (WTS) Soars 4.6%: Is Further Upside Left in the Stock?
Watts Water WTS shares ended the last trading session 4.6% higher at $180.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3% loss over the past four weeks.
The increase in share price can be attributed to robust demand for the company’s diversified product portfolio, especially in Asia-Pacific region as well as healthy growth in Europe.
The company is likely to benefit from continued investment in smart and connected-enabled products. Going ahead, the acquisition of Enware will likely help the company to expand its global footprint.
Apart from this, the company has announced its plans to acquire Bradley Corporation which is expected to be closed is the fourth quarter of 2023. The acquisition will strategically broaden the company’s reach in commercial and industrial markets as well as result in cost synergies through operational improvements and global sourcing savings.
This maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $1.83 per share in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $503.23 million, up 3.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Watts Water, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WTS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Watts Water is a member of the Zacks Instruments - Control industry. One other stock in the same industry, Woodward WWD, finished the last trading session 1.7% higher at $130.53. WWD has returned -1.6% over the past month.
For Woodward , the consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $1.27. This represents a change of +51.2% from what the company reported a year ago. Woodward currently has a Zacks Rank of #3 (Hold).
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Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
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