<div id="readability-page-1"><div><p>Analysts are warming up to Zurn Elkay Water Solutions (ZWS) after a wave of upbeat coverage following its better than expected third quarter earnings and raised full year guidance, and investors are paying attention.</p> <p>See our latest analysis for Zurn Elkay Water Solutions.</p> <p>That mix of upbeat earnings, raised guidance, and fresh Buy ratings appears to be feeding into a constructive trend, with a strong year to date share price return of 27.8 percent and a hefty three year total shareholder return of 134.1 percent suggesting momentum is still building rather than fading.</p> <p>If Zurn Elkay’s recent strength has you rethinking where growth could come from next, it might be worth exploring fast growing stocks with high insider ownership as a way to uncover other under the radar opportunities.</p> <p>With shares now trading close to consensus targets after a powerful multi year run, the key question is whether Zurn Elkay remains undervalued on its long term fundamentals or if the market is already pricing in future growth.</p> <h2>Most Popular Narrative Narrative: 8% Undervalued</h2> <p>With Zurn Elkay Water Solutions closing at $47.16 versus a narrative fair value of $51.25, the prevailing view sees meaningful upside still on the table.</p> <p><em>The rollout and market adoption of the new Elkay Pro Filtration platform, featuring drop-in replacements, longer filter life, proprietary filters, and IoT/connectivity, positions the company to accelerate replacement cycles and sustain double-digit growth in high-margin filtration revenue, supporting higher earnings and margin expansion.</em></p> <p>Read the complete narrative.</p> <p>Curious how steady mid single digit sales growth, rising margins, and a rich future earnings multiple can all coexist in one story? The narrative lays out a surprisingly aggressive profit roadmap and a premium valuation usually reserved for faster growing sectors. Want to see exactly which long term assumptions are doing the heavy lifting here?</p> <p><strong>Result: Fair Value of $51.25 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, recent demand pull forward from price hikes and heavy reliance on non residential construction could easily puncture those upbeat long term assumptions.</p> <p>Find out about the key risks to this Zurn Elkay Water Solutions narrative.</p> <h2>Another Way to Look at Value</h2> <p>On an earnings-based valuation, Zurn Elkay looks much richer than the story suggests. The shares trade on a price-to-earnings ratio of 42.2 times versus 19.8 times for the US Building industry and a fair ratio of 24.1 times, leaving little room for disappointment if growth cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ef5f3a62-7dfa-4e01-a443-f06876771f6f/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ef5f3a62-7dfa-4e01-a443-f06876771f6f/chart/pe-multiple-vs-industry"/><figcaption>NYSE:ZWS PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Zurn Elkay Water Solutions Narrative</h2> <p>If you see things differently or want to dig into the numbers yourself, you can build a complete narrative in just a few minutes: Do it your way.</p> <p>A great starting point for your Zurn Elkay Water Solutions research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Smart investors never stop scanning the horizon for the next edge, and the Simply Wall St Screener lines up those opportunities for you in minutes.</p> <ul> <li>Capture growth potential before the crowd by targeting companies flagged as undervalued using cash flow metrics through these 915 undervalued stocks based on cash flows.</li> <li>Capitalize on cutting edge innovation by focusing on businesses advancing machine learning and automation with these 25 AI penny stocks.</li> <li>Strengthen your portfolio income by zeroing in on reliable payers using these 13 dividend stocks with yields &gt; 3% with yields that stand out from the pack.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>Analysts are optimistic about Zurn Elkay Water Solutions (ZWS) following strong Q3 earnings and raised guidance. The stock shows a 27.8% YTD return and a 134.1% three-year return. Despite trading near consensus targets, ZWS is seen as 8% undervalued with a fair value of $51.25. The Elkay Pro Filtration platform could drive growth, but risks include reliance on non-residential construction. The PE ratio is high at 42.2 times, suggesting limited room for error if growth slows.</p>

Zurn Elkay Water Solutions (ZWS): Valuation Check After Upbeat Q3 Earnings and Fresh Analyst Buy Ratings