U.S. markets close in 3 hours 35 minutes
  • S&P 500

    4,527.89
    -49.21 (-1.08%)
     
  • Dow 30

    34,518.97
    -120.82 (-0.35%)
     
  • Nasdaq

    15,025.05
    -356.27 (-2.32%)
     
  • Russell 2000

    2,154.01
    -52.32 (-2.37%)
     
  • Crude Oil

    67.05
    +0.55 (+0.83%)
     
  • Gold

    1,781.80
    +19.10 (+1.08%)
     
  • Silver

    22.41
    +0.09 (+0.40%)
     
  • EUR/USD

    1.1311
    +0.0005 (+0.05%)
     
  • 10-Yr Bond

    1.3850
    -0.0630 (-4.35%)
     
  • GBP/USD

    1.3237
    -0.0065 (-0.49%)
     
  • USD/JPY

    112.9170
    -0.2920 (-0.26%)
     
  • BTC-USD

    55,060.39
    -1,515.83 (-2.68%)
     
  • CMC Crypto 200

    1,396.27
    -45.49 (-3.16%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

Xylem (XYL) and Dragos to Provide Cybersecurity Solutions

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Xylem Inc. XYL recently entered into a collaboration with Dragos, Inc. to offer advanced industrial cybersecurity to the water sector infrastructure.

Xylem’s shares declined 1.7% yesterday to eventually close the trading session at $119.30.

Based in Washington, D.C., Dragos is a leading provider of cybersecurity solutions for industrial controls systems (ICS) and operational technology (OT) platforms across the world.

Inside the Headlines

The partnership will leverage Xylem’s expertise in digital water solutions and Dragos’ proficiency in safeguarding critical infrastructure to come up with advanced cybersecurity solutions to support the digitalization of water infrastructure. As noted, the companies will provide co-branded incident response and incident prevention services to Xylem’s customers in the water utility sector throughout the world.

Based on Xylem’s product security framework, the Xylem-Dragos Incident Response Service works together with the existing security systems of the utilities that provides them with an additional security layer. The collaboration will offer water utilities with proactive threat hunting and quick response solutions that will improve their operational uptime and efficiency.

At its recently-held Investor Day, Xylem highlighted the long-term prospects and digital capabilities. The company expects strong demand for digital water solutions to boost growth prospects. It has been enhancing its digital products, solutions and services, which are expected to contribute 50% to sales by 2025. Xylem Vue, the company’s digital ecosystem, is likely to boost growth.

For the long term, the company’s core pillars include improving customer experience and increasing water’s digital transformation, expanding in underserved markets and local regions, talent retention, managing costs and creating healthy supply chains as well as strengthening digital infrastructure and core portfolio.

Zacks Rank, Price Performance and Estimate Trend

Xylem, with a $21.9-billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is grappling with the adverse impacts of cost inflation, related to material, labor, overhead and freight. Its highly-leveraged balance sheet is a concern. However, its strong product offerings, focus on innovation and diverse business structure is likely to prove beneficial.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

In the past three months, the company’s shares have dropped 0.9% compared with the industry’s decline of 7.9%.

The Zacks Consensus Estimate for 2021 earnings has declined 2.6% to $2.60 in the past 60 days. Earnings estimates for 2022 have declined 1.2% to $3.20 over the same period.

Stocks to Consider

Some better-ranked stocks from the same space are Kadant Inc KAI, Nordson Corporation NDSN and IDEX Corporation IEX. While Kadant and Nordson sport a Zacks Rank #1 (Strong Buy), IDEX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kadant pulled off an earnings surprise of 22.26%, on average, in the trailing four quarters.

Nordson delivered an earnings surprise of 17.77%, on average, in the trailing four quarters.

IDEX pulled off an earnings surprise of 6.73%, on average, in the trailing four quarters.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

IDEX Corporation (IEX) : Free Stock Analysis Report

Nordson Corporation (NDSN) : Free Stock Analysis Report

Kadant Inc (KAI) : Free Stock Analysis Report

Xylem Inc. (XYL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research