In the latest market activity, shares of Zurn Elkay Water Solutions Corp (Symbol: ZWS) have surged above the average analyst 12-month target price of $37.86, trading at $38.05 per share. When stocks reach their target price set by analysts, there are typically two possible responses: they can choose to downgrade the stock’s valuation or raise their target price. The decision often hinges on the underlying business developments fueling the stock’s rise.
Analyst Targets Vary Significantly
Within the Zacks coverage universe, a total of 7 analysts contributed to the average target for Zurn Elkay Water Solutions Corp. While the overall average provides a collective view, individual targets vary widely. One analyst projects a lower target of $31.00, while another sees potential for a price as high as $40.00. The standard deviation among these estimates stands at $3.236.
Assessing the Investment Signal
The goal of looking at the average target price is to leverage the “wisdom of crowds,” combining insights from multiple analysts rather than relying on a single perspective. With ZWS now above the average target price of $37.86, investors are encouraged to reconsider their positions. They must decide whether this price point is merely a checkpoint on the way to even higher valuations or if it signals an opportunity to reassess their investments and possibly reduce their holdings.
| Recent ZWS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 5 | 5 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.25 | 2.25 | 2.25 | 2.25 |
The average rating of 2.25 indicates a general leaning towards hold recommendations, on a scale where 1 is Strong Buy and 5 is Strong Sell. This analysis utilizes data provided by Zacks Investment Research via Quandl.com.
Explore the Top 25 Broker Analyst Picks of the S&P 500 »
Also See:
• BNGO YTD Return
• Top Ten Hedge Funds Holding LOPX
• Funds Holding SPDN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
