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With a market cap of $15.9 billion, London, the United Kingdom-based Pentair plc (PNR) operates in the industrials sector, focusing on water solutions. The company provides a wide range of smart and sustainable water solutions, including pool equipment, water treatment systems, and advanced filtration technologies for residential, commercial, and industrial markets worldwide.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Pentair fits this criterion perfectly, exceeding the mark. Pentair's uniqueness lies in its comprehensive integration of smart technology with sustainable water solutions across a wide range of applications, from residential pools to industrial fluid management.
However, the water titan has fallen marginally from its 52-week high of $96.83, achieved on Sep. 24. Shares of PNR are up 20.8% over the past three months, outperforming The Industrial Select Sector SPDR Fund’s (XLI) 9.4% gains over the same time frame.
Longer term, PNR is up 32.9% on a YTD basis, outpacing XLI’s 18.1% returns. Moreover, shares of Pentair have rallied 48.7% over the past 52 weeks, compared to XLI’s rise of 32.2% over the same time frame.
PNR has been trading above its 50-day and 200-day moving averages since November last year despite some fluctuations, indicating a bullish price trend.
Pentair has outperformed due to strong execution in its Pool segment, which saw resilient demand for repair, replacement, and automation products, offsetting weaker housing and consumer spending trends. In addition, the company’s focus on margin improvement and operational efficiency has bolstered profitability, helping it outpace competitors in the pool equipment and flow control sectors. Moreover, the stock surged 9% on Jul. 23 due to stronger-than-expected Q2 adjusted EPS of $1.22 and revenue of $1.1 billion. Plus, the company raised its full-year 2024 adjusted EPS guidance, signaling confidence despite projecting flat to slightly declining sales growth.
To emphasize the stock’s outperformance, rival A. O. Smith Corporation (AOS) is underperforming PNR. Shares of A. O. Smith have gained 32.9% over the past 52 weeks and are up 4% on a YTD basis.
Despite PNR's strong performance, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 18 analysts covering the stock, and as of writing, it is trading above the mean price target of $95.61.
On the date of publication, Sohini Mondal 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.
