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Xylem Offers Energy-Efficient Pump

Zacks Equity Research

Xylem Inc. (XYL) has lately implemented various corporate strategies to gain a greater pie in the market. The company has also been successfully expanding its operations through contract wins, acquisitions and product launches.

Recently, Xylem added e-HM – a stainless steel, energy-efficient pump under the Goulds Water Technology brand. The pump, expected to be 30% more efficient than other available variants, will be used for commercial and industrial applications.

The e-HM pump is 20% thicker compared with other available pumps, which makes it sturdier and increases its useful life. The pump will be utilized in diverse applications including water treatment, food and beverage, industrial refrigeration, industrial washing and cleaning and original equipment manufacturers’ custom applications. The pump is currently available in two designs, six models and modular construction with an option for customization.

In August, Xylem unveiled an extension of its WEDECO disinfection systems. The new WEDECO ultraviolet disinfection solutions are specifically developed for the tank-based aquaculture industry. The new closed-vessel WEDECO BX and Quadron series ultraviolet systems have been designed for countering disease-causing agents like fish pathogens. The system can also be used in saltwater as its duplex stainless steel container is resistant to corrosion.

Despite all these initiatives, Xylem has been performing below expectations, with negative earnings surprise for the past two quarters. However, we expect the company to perform better in the coming quarters with new product launches. Xylem is expected to report third-quarter 2013 results on Oct 29. The Zacks Consensus Estimate for the upcoming quarter is pegged at 36 cents.

Xylem currently carries a Zacks Rank #2 (Buy). Other stocks in the industry worth reckoning include Manitex International, Inc. (MNTX), The Babcock & Wilcox Company (BWC) and The Middleby Corporation (MIDD). While Manitex International carries a Zacks Rank #1 (Strong Buy), Babcock & Wilcox and Middleby carry a Zacks Rank #2.

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