Zurn Elkay Water Solutions (ZWS): A Fresh Look at Valuation Following Upgraded Growth Outlook and Analyst Optimism

Zurn Elkay Water Solutions (ZWS) caught investor attention after leadership discussed a more ambitious growth strategy, particularly for its Elkay drinking water platform. The company has also raised its outlook for full-year 2025.

See our latest analysis for Zurn Elkay Water Solutions.

Momentum appears to be picking up for Zurn Elkay Water Solutions, with the stock notching a 30% total shareholder return over the past year. This positive shift has followed upbeat company updates and a stronger growth outlook for 2025, which signals renewed investor confidence in the business beyond recent market moves.

If the prospect of sustainable growth has you looking for more ideas, this could be a perfect moment to discover fast growing stocks with high insider ownership.

But with shares trading right near analyst price targets after a strong run, is Zurn Elkay Water Solutions still undervalued, or is the market already looking ahead and pricing in the next wave of growth?

Most Popular Narrative: Fairly Valued

The narrative’s fair value estimate of $47.14 nearly matches the last close at $47.29, signaling a market in tight agreement with the current outlook. Attention now turns to what could drive a break from this equilibrium.

The rollout and market adoption of the new Elkay Pro Filtration platform, with drop-in replacements, longer filter life, proprietary filters, and IoT/connectivity, positions the company to accelerate replacement cycles and sustain double-digit growth in high-margin filtration revenue. This supports higher earnings and margin expansion.

Read the complete narrative.

Wondering just how bold these assumptions are? The real shocker: the narrative’s math hinges on a major transformation in earnings and profits. Are analysts betting on not just incremental growth, but an accelerated shift into higher-margin territory? Dive into the full narrative to uncover the projections behind this razor-thin fair value call.

Result: Fair Value of $47.14 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a slowdown in core demand or unexpected regulatory delays could quickly put pressure on Zurn Elkay’s ambitious growth and margin assumptions.

Find out about the key risks to this Zurn Elkay Water Solutions narrative.

Build Your Own Zurn Elkay Water Solutions Narrative

If you see things differently, or want to dig into the numbers yourself, you can build your own perspective in just minutes, and Do it your way.

A great starting point for your Zurn Elkay Water Solutions research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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