XYL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Buy now. XYL is sitting just below the pivot (139.83) and not far above key support (134.41), while fundamentals are trending positively (Q3 2025 growth and margin expansion) and options positioning is modestly bullish (put/call ratios < 1). Even though near-term technical momentum is soft (bearish MACD), the risk/reward at ~138 is favorable for an immediate entry with upside back toward 145–149 resistance and, longer-term, analyst targets largely in the 150–175 range.
Price/levels: XYL closed at 138, below the pivot 139.834, implying near-term overhead supply. Key levels: Support S1 134.413 (then S2 131.065); Resistance R1 145.255 (then R2 148.603). Momentum: MACD histogram is -0.451 and negatively expanding, signaling bearish momentum still building. RSI(6) at ~41.99 is neutral-to-soft (not oversold), suggesting downside pressure can persist but also that a bounce from support is plausible. Trend structure: moving averages are converging, consistent with consolidation rather than a strong trend. Near-term bias: slightly bearish/sideways until price reclaims the pivot; tactically attractive entry closer to support with upside to 145+ if momentum turns.
Earnings catalyst: QDEC 2025 earnings on 2026-02-10 (pre-market) could re-rate the stock if guidance confirms steady 2026 growth.
Business quality/positioning: Analysts highlight XYL as a mission-critical water solutions leader with trusted brands and a large installed base—supports durable demand.
Financial trajectory: Recent quarter showed revenue growth and margin expansion, supportive of continued multiple support if sustained.
Options sentiment: Put/call ratios below 1 reflect moderately bullish positioning.
Technical momentum is currently bearish (MACD negative and worsening) and price is below the pivot, increasing risk of a retest toward 134 support.
Analyst target trims suggest some caution on sector/funding dynamics and broader multi-industry uncertainty (e.g., "evolving funding dynamics", "uneven terrain").
No near-term news flow in the past week—fewer immediate narrative catalysts until earnings.
No notable hedge fund/insider accumulation signals recently (both neutral).
Latest reported quarter: 2025/Q3. Revenue rose to $2.268B (+7.79% YoY), net income increased to $227M (+4.61% YoY), EPS grew to $0.93 (+4.49% YoY), and gross margin improved to 38.93 (+4.48% YoY). Overall: solid top-line growth with improving profitability/margins—fundamental trend is positive heading into the next earnings cycle.
Recent trend: Ratings skew positive but price targets have been mixed. William Blair initiated with Outperform (no PT) on 2026-01-26. Barclays kept Overweight but cut PT to 166 (from 172) on 2026-01-07. Mizuho maintained Neutral with a PT cut to 150 (from 160) on 2026-01-05. TD Cowen raised PT to 135 (from 130) with Hold on 2025-12-05. UBS raised PT to 175 (from 168) with Buy on 2025-11-06. Wall Street pros: category leadership in water solutions, steady growth outlook, strong installed base/brands. Cons: some caution around funding dynamics/sector outlook leading to PT trims and a split between bullish (Buy/Overweight/Outperform) and neutral/hold stances.
