Stock Price & Analysis

Analysis and Insights

Recent Performance and Financials:

Watts Water Technologies (WTS) has shown strong performance, rising 10.4% recently, driven by better-than-expected Q4 earnings with an adjusted EPS of $2.05, exceeding consensus estimates of $1.91. The company also anticipates revenue growth in Q1 and FY25, though margins are expected to decline slightly.

Technical Analysis:

The stock is trading at $216.03, with a neutral RSI of 52. Fibonacci levels indicate resistance at $219.49 and support at $203.17, suggesting the stock is in a stable range.

Valuation and Analyst Sentiment:

WTS has a forward P/E of 34.5x, higher than its 5-year average, indicating premium valuation. Analysts have mixed opinions, with a consensus rating of Hold and a price target of $217.02, slightly below the current price.

Conclusion:

Given the strong earnings and growth projections, WTS is a solid hold. However, considering the high valuation and mixed analyst sentiment, it may be prudent to take profits or wait for a dip before buying more.

WTS stock is predicted to reach $220 by Q2 2025, driven by strong Q4 earnings and analyst upgrades. The stock currently trades at $216.03, with a Fibonacci resistance level at $216.37 and support at $206.29. Analysts have raised targets, with Stifel at $219 and Goldman Sachs at $217, reflecting confidence despite restructuring costs.

The S1 support level for WTS Stock is $205.62 ,The R1 resistant level for WTS Stock is $215.7.

As of the end of day on 2025-03-14, the price of WTS Stock was $210.25.

The target price for WTS Stock according to analyst rating is 218.80, with the highest price target at 240.00 and the lowest at 180.00. Analysts have a Hold rating on WTS Stock overall.

The market cap of WTS is $7.0B.

WTS may be overvalued based on its high valuation multiples and inconsistent growth trends. Its PE ratio of 23.39 and EV/EBITDA of 14.5 are above industry averages, suggesting a premium price. The stock has risen 10.4% recently, potentially indicating short-term overbuying. While revenue and net income have grown, the high debt-to-equity ratio and moderate margins raise concerns. Analysts mostly hold a neutral stance, reflecting uncertainty. Overall, WTS appears overvalued, and investors should exercise caution.

Watts Water Technologies, Inc. is a supplier of products, solutions and systems that manage and conserve the flow of fluids and energy into, through and out of buildings. The Company’s product lines include residential and commercial flow control products, such as backflow preventers, water pressure regulators, temperature and pressure relief valves, and leak detection products; heating, ventilation and air conditioning and gas products, which include water heaters and heating solutions, hydronic and electric heating systems for under-floor radiant applications, custom heat and hot water solutions and hydronic pump groups; drainage and water re-use products, which includes drainage and engineered rainwater harvesting solutions for commercial, industrial, marine and residential applications, and water quality products, such as point-of-use and point-of-entry water filtration and scale prevention systems. The Company also offers commercial washroom and emergency safety products.

Watts Water Technologies (WTS) is expected to reach a price range of $350-$400 by 2030, driven by strong financial performance and growing demand for water conservation solutions. The company's recent earnings beat and positive revenue growth projections position it well for long-term appreciation. Its focus on innovation and strategic acquisitions further supports this bullish outlook.

WTS has a total of 5100 employees.