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Here's How Much a $1000 Investment in Xylem Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Xylem (XYL - Free Report) ten years ago? It may not have been easy to hold on to XYL for all that time, but if you did, how much would your investment be worth today?

Xylem's Business In-Depth

With that in mind, let's take a look at Xylem's main business drivers.

Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. The company is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.

The company reports business operations under three segmental heads — Water Infrastructure, Measurement & Control Solutions and Applied Water. Details of the company's segmental operations are discussed below.

Water Infrastructure (42.8% of total revenues generated in 2022): This segment offers product range mainly used for transportation, treatment and testing of water. These products facilitate the process that involves collecting water from a source and distributing it to users while returning the wastewater to the environment. This process includes two applications — Transport and Treatment. The segment includes brands like Flygt, Godwin, Leopold, WEDECO and Sanitaire.

Applied Water (32%): This segment offers various products that deal with the use of water. These products have a wide range of applications — including Building Services (commercial and residential) and Industrial Water. Brands like Goulds Water Technology, Lowara, Bell & Gossett, A-C Fire Pump, Standard, Jabsco, and Flojet form parts of this segment.

Measurement & Control Solutions (25.2%): This segment includes consolidated results of Xylem's Analytics, Sensus and Visenti businesses. These products have a wide range of applications that include Water, Energy, Test and Software as a Service/Other. Brands like Pure, Sensus, EmNet, Visenti, Smith Blair, YSI and WTW form parts of this segment.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Xylem a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in November 2013 would be worth $2,908.04, or a gain of 190.80%, as of November 16, 2023, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 150.41% and the price of gold went up 46.17% over the same time frame.

Analysts are forecasting more upside for XYL too.

Strength across the utilities and industrial water applications end markets, strong industrial demand and improving supply chains are expected to drive Xylem’s growth. Growth in the utilities and industrial end markets is driving the Water Infrastructure segment. Improving supply chains and strong demand in the test and measurement market are aiding the M&CS unit. Synergies from the Evoqua acquisition bolster XYL’s growth. Amid a healthy demand environment and commercial and operational momentum, Xylem has improved its 2023 guidance. XYL’s commitment to rewarding its shareholders adds to its appeal. However, weakness in the residential building solutions market is acting as a hindrance to the Applied Water segment. Rising costs are weighing on XYL's bottom line. Also, foreign currency headwinds are added concerns for XYL.

The stock has jumped 10.96% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.

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