What Makes Xylem (XYL) So Attractive

Xylem Inc (NYSE:XYL) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On January 26, Brian Drab of William Blair initiated coverage of Xylem Inc. (NYSE: XYL) and assigned an Outperform rating. The analyst acknowledged the company’s comprehensive suite of offerings that extensively cover every aspect of the water and wastewater cycle, and labeled them as “often mission critical” for the customer base across utility and industrial segments. He views the company as “the world’s largest pure-play water company.”

On January 5, Brett Linzey from Mizuho Securities reaffirmed his Hold rating on Xylem Inc (NYSE:XYL). The analyst also lowered his price target estimate from $160 to $150. Linzey’s downward revision of the target price stems from Mizuho Securities’ broader adjustments to the electrical equipment and multi-industry group in line with the firm’s 2026 outlook. He anticipates “uneven terrain ahead” for the segment, yet believes that uncertainties linked with tariffs are starting to disappear.

Xylem Inc. (NYSE:XYL) is a water technology provider that designs products and solutions for treating, testing, and for the efficient use of water. These products and solutions are used in commercial, industrial, and residential buildings, as well as other public settings. Some of their offerings include wastewater pumps, filtration & disinfection solutions, biological treatment equipment, valves, and heat exchangers.

While we acknowledge the potential of XYL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.