Jul. 30, 2025 at 2:06 PM ET6 min read

Zurn Elkay Water Surges: Is It a Buy?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Zurn Elkay Water Solutions Corporation’s stocks have been trading up by 12.82 percent, reflecting positive market sentiment.

Recent Developments in the Market

  • Zurn Elkay Water Solutions celebrated a strong Q2, surpassing both EPS and revenue expectations, reaching $444.5M compared to the projected $424.58M, with a remarkable adjusted EBITDA margin of 26.5%.
  • The latest financial briefing from Zurn Elkay Water revealed anticipated core sales growth of at least 5% for FY25, with adjusted EBITDA set to rise, forecasted between $420M to $430M, alongside an expected full-year free cash flow of about $300M.
  • Analysts at Stifel, led by Nathan Jones, increased Zurn Elkay Water’s price target to $43 from $39, maintaining a Buy rating due to stable demand and promising guidance.
  • Zurn Elkay Water declared a quarterly dividend of $0.09 per share, payable to shareholders by Sep 5, 2025, solidifying its status as one of America’s Most Responsible and Greenest Companies.
  • Zurn Elkay Water’s strategic decision to engage in a conference call regarding Q2 2025 financial results signals continued transparency and engagement with investors.

Candlestick Chart

Live Update At 14:05:39 EST: On Wednesday, July 30, 2025 Zurn Elkay Water Solutions Corporation stock [NYSE: ZWS] is trending up by 12.82%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Insights and Earnings Snapshot

Beyond the corporate shine, Zurn Elkay Water’s recent financial results are a testament to its robust performance. The company achieved significant year-over-year core sales growth of 8%, underscored by solid adjusted EBITDA figures. In line with trading principles, as Tim Bohen, lead trainer with StocksToTrade, says, “I never chase price. The best opportunities allow me to enter on my terms, not when I’m feeling pressured.” Interesting figures reveal the company’s impressive sales revenue and profit margin, with gross margin standing at a substantial 45.4%. The leverage ratio of 0.7x further demonstrates an effective capital management strategy. This strategic approach reflects Zurn Elkay Water’s capability to capitalize on financial opportunities on its own terms, enhancing its market resilience.

The company’s ability to exceed expectations with a Q2 adjusted EPS of 42c, versus a consensus of 36c, speaks volumes of its operational excellence. This achievement is bolstered by its prudent control over operational costs, a factor pivotal to maintaining a high profitability ratio. Intriguingly, Zurn Elkay Water projects considerable expansion in EBITDA, estimating it to reach upwards of $430M, instilling optimism among shareholders.

The buzz doesn’t stop with impressive financials. Zurn Elkay Water’s payout of dividends signifies consistent value returns to its shareholders, a promise eagerly anticipated each quarter. CEO Todd Adams and his team’s communication of an upbeat outlook through conference calls leaves investors pondering the buoyant prospects on the horizon.

Market Reaction and Stock Movement

Current market trends are painting a picture of robust investor enthusiasm surrounding Zurn Elkay Water. A visible uptick in stock prices highlights the market’s acknowledgment of the company’s healthy financial and operational stance. The share prices’ upward momentum trails the excitement around surpassing revenue milestones.

An evident market pattern emerges as sound performance drives share value. The slightly hefty P/E ratio, although higher compared to industry peers, may indicate heightened growth expectations, reflecting elevated investor sentiment towards potential future gains. The company’s strategic focus on elevating EBITDA and net cash flow continues to find favor with market participants.

The financial reports resonate optimism not just in present figures but in forward-looking statements. This carefully crafted forecast of a 5% increase in core sales and substantial cash flow has investors watching eagerly, driving up collective confidence levels.

More Breaking News

Mirroring Market Movements

Zurn Elkay Water’s recent rise isn’t an isolated incident; it mirrors broader industry trends, where companies are breaking free from pandemic-linked shackles, exploring new growth avenues, and expanding market reach. Corporate resilience has become the prevalent narrative, and Zurn Elkay Water is capitalizing on this momentum.

With each step forward, the company’s actions reflect strategic alignment with ESG criteria, an emerging standard among discerning investors. Recognition from reputable platforms like Newsweek and TIME only strengthens its professional clout and places it in the limelight as an industry leader engaged in sustainable operation pursuits.

Conclusion and Prospects

As traders decipher Zurn Elkay Water’s trajectory, the future appears promising, albeit not without challenges. Their commendable ability to outstrip estimates fosters confidence, leaving a trail of potential trading opportunities. As they prepare for the upcoming earnings call, enthusiasts and spectators alike wait for updates that potentially influence market dynamics. As Tim Bohen, lead trainer with StocksToTrade says, “A good trade setup checks all the boxes—volume, trend, catalyst. Don’t trade if you’re missing pieces of the puzzle.” This wisdom resonates as traders assess whether current conditions perfectly align for strategic moves.

The question looms large—will Zurn Elkay Water sustain this growth glide, securing its place higher in the trading realm? Or will shifts in a brisk market environment necessitate recalibration? As the suspense builds, one can’t help but anticipate the next financial season, standing at the cusp of what could very well be another stellar year for Zurn Elkay Water Solutions.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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