Is Xylem (XYL) A High Growth Investment?

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐5.17% net of fees and expenses, outperforming the Russell 1000 Value Index, which returned ‐5.62%. At the same time, the fund underperformed the S&P 500 Index, which returned ‐4.88%. The fund’s outperformance to the Russell 1000 Value Index in the quarter was attributed to stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Capital highlighted stocks like Xylem Inc. (NYSE:XYL) in its Q3 2022 investor letter. Headquartered in Rye Brook, New York, Xylem Inc. (NYSE:XYL) provides water and wastewater applications solutions. On November 23, 2022, Xylem Inc. (NYSE:XYL) stock closed at $113.25 per share. One-month return of Xylem Inc. (NYSE:XYL) was 14.31%, and its shares lost 9.43% of their value over the last 52 weeks. Xylem Inc. (NYSE:XYL) has a market capitalization of $20.41 billion.

Aristotle Capital made the following comment about Xylem Inc. (NYSE:XYL) in its Q3 2022 investor letter:

Xylem Inc. (NYSE:XYL), the water equipment and services supplier, was a leading contributor for the quarter. The company’s solutions and technology continued to enjoy strong global demand as public utilities, as well as industrial, commercial and residential clients, seek solutions to treat, test, transport and preserve water. Similar to other industries, Xylem’s business has been impacted in the short term by the effects of inflation and chip‐supply constraints (that are now moderating), leading to an increasing backlog that has delayed the ability to fulfill orders. We believe Xylem’s portfolio of highly differentiated pumps, recognized for their quality and critical uses, as well as the company’s ability to cross‐sell and link other products, such as sensors and smart meters, will make it a one‐stop shop for utilities and protect the company from pure price competition. In our opinion, long‐term trends, such as water scarcity and the need to replace aging water infrastructure, create strong underlying demand for Xylem’s products through various parts of the economic cycle.”

Photo by RephiLe water on Unsplash

Xylem Inc. (NYSE:XYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Xylem Inc. (NYSE:XYL) at the end of the third quarter, which was 25 in the previous quarter.

We discussed Xylem Inc. (NYSE:XYL) in another article and shared the best water stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.

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