What Happened?

Shares of water technology company Xylem (NYSE:XYL) jumped 7.2% in the morning session after the company reported impressive fourth-quarter results, which blew past analysts' organic revenue and EPS estimates. The results were buoyed by strong execution and demand. On the other hand, its full-year revenue and EPS guidance missed. Overall, this was a mixed yet decent quarter.

The shares closed the day at $129.40, up 5.5% from previous close.

Is now the time to buy Xylem? Access our full analysis report here, it’s free .

What The Market Is Telling Us

Xylem’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Xylem is up 11.5% since the beginning of the year, but at $129.24 per share, it is still trading 11.4% below its 52-week high of $145.95 from May 2024. Investors who bought $1,000 worth of Xylem’s shares 5 years ago would now be looking at an investment worth $1,494.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link .