From Nasdaq:

Pentair (PNR) has outperformed the industry’s growth, gaining 62.3% over the past year compared to the industrial products sector’s 15.9% and the Zacks S&P 500 composite’s 25.2%. The company carries a Zacks Rank #3 (Hold) and has a market capitalization of around $12.1 billion, with an average volume of 1.43M shares traded in the last three months.

Pentair remains strong in both the Industrial and Flow Technologies and Water Solutions segments, helping offset the impact of weak pool volumes over the past few quarters. Additionally, the company has delivered margin expansion across each of its segments, led by price hikes, cost-cutting measures, and progress on its Transformation initiatives. Product introductions, acquisitions and investments align with its expansion into pool and water treatment markets, further aiding growth.

The pool business is expected to improve, despite recent weakness and ongoing inventory correction. The channel inventory correction is expected to be completed this year, and with an installed base of approximately 5.4 million pools in North America, Pentair is well-positioned for long-term growth. The increasing demand for autonomous and energy-efficient pools is also expected to benefit the company.

Pentair’s focus on strategic initiatives including digital transformation, innovation, technology, and acquisitions is expected to aid growth. The company has also embarked on a Transformation program targeting its return on sales to be around 23% by 2025; it has a long-term cash flow target and a solid balance sheet. Analysts at Zacks recommend keeping a close watch on stocks like Resideo Technologies, Inc. (REZI), Applied Industrial Technologies (AIT), and A. O. Smith Corporation (AOS) based on strong earnings growth projections.



Read more: Pentair (PNR) Gains 62% in a Year: Will the Rally Hold in 2024?