Analysts Expect XMHQ Will Reach $111
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2025
0mins
Should l Buy WMS?
Source: NASDAQ.COM
ETF Analysis: The Invesco S&P MidCap Quality ETF (XMHQ) has an implied analyst target price of $111.27, indicating a potential upside of 25.93% from its current trading price of $88.36.
Stock Performance Insights: Notable underlying holdings such as ChampionX Corp, Roivant Sciences Ltd, and Advanced Drainage Systems Inc show significant upside potential based on analysts' target prices, raising questions about the validity of these targets in light of recent market developments.
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Analyst Views on WMS
Wall Street analysts forecast WMS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMS is 178.67 USD with a low forecast of 168.00 USD and a high forecast of 197.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 170.030
Low
168.00
Averages
178.67
High
197.00
Current: 170.030
Low
168.00
Averages
178.67
High
197.00
About WMS
Advanced Drainage Systems, Inc. is a manufacturer of stormwater and onsite wastewater solutions. The Company and its subsidiary, Infiltrator Water Technologies, LLC, provide stormwater drainage and onsite wastewater products used in a wide variety of markets and applications, including commercial, residential, infrastructure and agriculture, while delivering customer service. Its pipe segment manufactures and markets thermoplastic corrugated pipe throughout the United States. Its infiltrator segment is a provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Its international segment manufactures and markets products in regions outside the United States, with a strategy focused on its owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. Its other segments manufacture a range of allied products and other that are complementary to their pipe products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UBS Increases Target Price for Advanced Drainage Systems Inc. to $215 from $197
Price Increase Announcement: Advanced Drainage Systems has raised its target price to $215 from $197.
Market Impact: This price adjustment reflects the company's strategic positioning and anticipated growth in the drainage systems market.
See More
Advanced Drainage Systems Reports Strong Q3 2026 Earnings
- Profitability Improvement: Advanced Drainage Systems achieved a 30.2% adjusted EBITDA margin in Q3 2026, reflecting a 250 basis point increase year-over-year, demonstrating the effectiveness of its market share and new product strategies.
- Cash Flow Performance: Year-to-date, the company generated $779 million in cash from operations, a 44% increase year-over-year, primarily driven by effective working capital management and enhanced profitability, which strengthens the company's financial stability.
- Acquisition Integration Progress: The acquisition of NDS was completed during the quarter, expected to contribute approximately $40 million in revenue and a 20% EBITDA margin, further solidifying its position in stormwater and wastewater management.
- Shareholder Return Plan: The company announced a new $1 billion stock repurchase authorization, bringing the total to $1.148 billion, reflecting confidence in future profitability while providing greater return potential for shareholders.
See More
Advanced Drainage Systems Declares Quarterly Dividend
- Quarterly Dividend Announcement: Advanced Drainage Systems has declared a quarterly dividend of $0.18 per share, consistent with previous distributions, indicating the company's stability in the current economic climate, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 0.45% reflects the company's ongoing commitment to its dividend policy, potentially enhancing investor confidence in its long-term investment value amidst market fluctuations.
- Payment Schedule: The dividend is payable on March 16, with a record date of March 2 and an ex-dividend date also set for March 2, providing shareholders with a clear timeline that aids in financial planning and investment strategies.
- Financial Performance Overview: While the company reported a non-GAAP EPS of $1.27, exceeding expectations by $0.16, its revenue of $2.8M fell short of the anticipated $682.62M, highlighting challenges in revenue growth that may impact future shareholder confidence.
See More
Advanced Drainage Systems Q3 Earnings Beat Expectations
- Earnings Beat: Advanced Drainage Systems reported a Q3 Non-GAAP EPS of $1.27, exceeding expectations by $0.16, indicating resilience in profitability despite significant revenue decline.
- Revenue Decline: The company’s Q3 revenue was $2.8 million, down 99.6% year-over-year and missing market expectations by $682.62 million, highlighting the substantial impact of weak market demand on performance.
- Financial Target Update: The company updated its fiscal 2026 financial targets, projecting net sales between $2.990 billion and $3.040 billion, with adjusted EBITDA expected to range from $930 million to $960 million, reflecting confidence in future growth.
- Capital Expenditure Plans: Capital expenditures are expected to be approximately $250 million, indicating the company’s commitment to investing in infrastructure and operations to support long-term growth strategies.
See More
Advanced Drainage Systems Set to Announce Q3 Earnings on February 5th
- Earnings Announcement Schedule: Advanced Drainage Systems (WMS) is set to announce its Q3 earnings on February 5th before market open, with consensus EPS estimate at $1.11, reflecting a 1.8% year-over-year growth, indicating the company's resilience in the current economic climate.
- Revenue Expectations: The anticipated revenue for Q3 is $685.42 million, representing a 0.7% year-over-year decline, which highlights potential pressures on the company's performance due to increased market competition and rising raw material costs.
- Historical Performance Review: Over the past two years, WMS has beaten EPS estimates 50% of the time and revenue estimates 63% of the time, demonstrating a degree of stability and reliability in its financial performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen three upward revisions and five downward revisions, while revenue estimates experienced six upward revisions and two downward revisions, indicating analyst divergence regarding the company's future performance and market uncertainty.
See More
ADS Completes Acquisition of Norma Group's Water Management Business
- Acquisition Completed: Advanced Drainage Systems (ADS) has successfully completed the acquisition of Norma Group SE's water management business, integrating NDS's residential water management, access box, and irrigation solutions into ADS's offerings, thereby enhancing its market position in water management.
- Market Expansion: This acquisition not only strengthens ADS's capabilities as a comprehensive water solutions provider but also solidifies its position in higher-margin businesses, which is expected to boost the company's competitiveness in the rapidly growing water management market.
- Strategic Integration: CEO Scott Barbour stated that this transaction will diversify the solutions offered along the water value chain, enhance customer service capabilities, and create long-term value through disciplined capital allocation.
- Advisory Team: Centerview Partners and Jefferies acted as financial advisors, while Davis Polk & Wardwell LLP and others provided legal counsel, ensuring the smooth execution of the transaction and supporting future integration efforts.
See More
UBS Increases Target Price for Advanced Drainage Systems Inc. to $215 from $197
Price Increase Announcement: Advanced Drainage Systems has raised its target price to $215 from $197.
Market Impact: This price adjustment reflects the company's strategic positioning and anticipated growth in the drainage systems market.
See More
Advanced Drainage Systems Reports Strong Q3 2026 Earnings
- Profitability Improvement: Advanced Drainage Systems achieved a 30.2% adjusted EBITDA margin in Q3 2026, reflecting a 250 basis point increase year-over-year, demonstrating the effectiveness of its market share and new product strategies.
- Cash Flow Performance: Year-to-date, the company generated $779 million in cash from operations, a 44% increase year-over-year, primarily driven by effective working capital management and enhanced profitability, which strengthens the company's financial stability.
- Acquisition Integration Progress: The acquisition of NDS was completed during the quarter, expected to contribute approximately $40 million in revenue and a 20% EBITDA margin, further solidifying its position in stormwater and wastewater management.
- Shareholder Return Plan: The company announced a new $1 billion stock repurchase authorization, bringing the total to $1.148 billion, reflecting confidence in future profitability while providing greater return potential for shareholders.
See More
Advanced Drainage Systems Declares Quarterly Dividend
- Quarterly Dividend Announcement: Advanced Drainage Systems has declared a quarterly dividend of $0.18 per share, consistent with previous distributions, indicating the company's stability in the current economic climate, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 0.45% reflects the company's ongoing commitment to its dividend policy, potentially enhancing investor confidence in its long-term investment value amidst market fluctuations.
- Payment Schedule: The dividend is payable on March 16, with a record date of March 2 and an ex-dividend date also set for March 2, providing shareholders with a clear timeline that aids in financial planning and investment strategies.
- Financial Performance Overview: While the company reported a non-GAAP EPS of $1.27, exceeding expectations by $0.16, its revenue of $2.8M fell short of the anticipated $682.62M, highlighting challenges in revenue growth that may impact future shareholder confidence.
See More
Advanced Drainage Systems Q3 Earnings Beat Expectations
- Earnings Beat: Advanced Drainage Systems reported a Q3 Non-GAAP EPS of $1.27, exceeding expectations by $0.16, indicating resilience in profitability despite significant revenue decline.
- Revenue Decline: The company’s Q3 revenue was $2.8 million, down 99.6% year-over-year and missing market expectations by $682.62 million, highlighting the substantial impact of weak market demand on performance.
- Financial Target Update: The company updated its fiscal 2026 financial targets, projecting net sales between $2.990 billion and $3.040 billion, with adjusted EBITDA expected to range from $930 million to $960 million, reflecting confidence in future growth.
- Capital Expenditure Plans: Capital expenditures are expected to be approximately $250 million, indicating the company’s commitment to investing in infrastructure and operations to support long-term growth strategies.
See More
Advanced Drainage Systems Set to Announce Q3 Earnings on February 5th
- Earnings Announcement Schedule: Advanced Drainage Systems (WMS) is set to announce its Q3 earnings on February 5th before market open, with consensus EPS estimate at $1.11, reflecting a 1.8% year-over-year growth, indicating the company's resilience in the current economic climate.
- Revenue Expectations: The anticipated revenue for Q3 is $685.42 million, representing a 0.7% year-over-year decline, which highlights potential pressures on the company's performance due to increased market competition and rising raw material costs.
- Historical Performance Review: Over the past two years, WMS has beaten EPS estimates 50% of the time and revenue estimates 63% of the time, demonstrating a degree of stability and reliability in its financial performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen three upward revisions and five downward revisions, while revenue estimates experienced six upward revisions and two downward revisions, indicating analyst divergence regarding the company's future performance and market uncertainty.
See More
ADS Completes Acquisition of Norma Group's Water Management Business
- Acquisition Completed: Advanced Drainage Systems (ADS) has successfully completed the acquisition of Norma Group SE's water management business, integrating NDS's residential water management, access box, and irrigation solutions into ADS's offerings, thereby enhancing its market position in water management.
- Market Expansion: This acquisition not only strengthens ADS's capabilities as a comprehensive water solutions provider but also solidifies its position in higher-margin businesses, which is expected to boost the company's competitiveness in the rapidly growing water management market.
- Strategic Integration: CEO Scott Barbour stated that this transaction will diversify the solutions offered along the water value chain, enhance customer service capabilities, and create long-term value through disciplined capital allocation.
- Advisory Team: Centerview Partners and Jefferies acted as financial advisors, while Davis Polk & Wardwell LLP and others provided legal counsel, ensuring the smooth execution of the transaction and supporting future integration efforts.
See More
