Pentair plc: A Steady Performer in Water Treatment Stock
Solid Growth Numbers and Analyst Support Point to Bright Future
London-based Pentair plc (PNR) specializes in water treatment, operating through three main segments: Flow, Water Solutions, and Pool. With a significant market capitalization of $16.9 billion, Pentair offers a range of smart and sustainable solutions, helping homes and industries access clean water while reducing consumption and promoting reuse.
Categorized as a “large-cap stock” due to its impressive market cap, Pentair holds substantial influence in the water treatment industry. Its size allows it to lead the way in providing essential water solutions.
Pentair recently reached an all-time high of $110.71 on November 27, currently trading 7.5% below that peak. Over the last three months, the stock has risen more than 5%, outperforming the First Trust Water ETF (FIW), which decreased by 4.4% in the same period.
Looking at longer-term growth, Pentair’s performance is even more impressive, with a 36.5% increase over the last six months and a 41.1% rise over the past year. This significantly outshines FIW’s 3.7% and 8.9% gains in the same respective periods.
Pentair’s stock has consistently traded above its 200-day moving average for the past year and has mostly stayed above its 50-day moving average since mid-July, with only slight fluctuations.
Even after reporting better-than-expected quarterly results, Pentair’s shares experienced a slight dip following its Q3 earnings release on October 22. The company saw a 1.5% year-over-year decline in net sales to $993.4 million, largely due to drops in its Flow and Water Solutions segments. However, this decline was anticipated, and Pentair exceeded Wall Street’s sales estimate of $990 million. Notably, margin expansion led to a significant increase in adjusted operating income, resulting in a robust 16% rise in adjusted EPS compared to the same quarter last year, reaching $1.09 and surpassing analyst predictions by 1.9%.
In light of its strong quarterly performance, Pentair has raised its adjusted EPS guidance for the full year to approximately $4.27.
Pentair has also outperformed its peer, American Water Works Company, Inc. (AWK), which saw a 2.6% decline over the last six months and a 4.6% drop over the past year.
Among 19 analysts following the PNR stock, the consensus rating stands at “Moderate Buy.” The average price target of $113.61 indicates a potential upside of 10.9% from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
