Should You Buy Zurn Elkay Water Solutions Corp (ZWS) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/30
ZWS is not a good buy right now for an impatient investor. The near-term technical setup is weakening (bearish MACD, RSI below 40 and drifting toward support) and insider selling has surged sharply, while an earnings catalyst is imminent (Feb 3 after hours). Despite solid underlying growth and generally constructive sell-side views, the current timing/risk-reward favors waiting rather than buying immediately.
Technical Analysis
Price is 46.11 (-0.88%) and sitting just above first support (S1 ~45.74) with the pivot overhead at ~46.73. Momentum is soft: MACD histogram is negative (-0.04) and expanding lower, implying downside momentum is building. RSI(6) at 39.17 is not oversold but is weak, consistent with a short-term down/mean-reversion zone rather than a fresh uptrend. Moving averages are converging, suggesting no strong trend but increased likelihood of a break; given MACD direction, the bias is slightly bearish unless price reclaims the pivot (46.73) and pushes toward 47.71/48.32 resistance. Near-term pattern-based outlook is modest: ~+1.1% over the next week but ~-2.92% over the next month, aligning with a choppy-to-down near-term setup.
Analyst Ratings and Price Target Trends
Recent sell-side trend: coverage is constructive but mixed. Jefferies initiated Buy with a $58 target (bull case: filtered drinking water adoption, resilient demand, capital deployment upside). RBC initiated Sector Perform with a $49 target (acknowledges category leadership/defensive end markets but questions continued growth and margin expansion). Wall Street pros: strong growth profile, defensive end markets, secular tailwinds in filtered water, potential capital deployment upside. Cons: margin expansion uncertainty (also echoed by RBC) and recent heavy insider selling undermines confidence near-term.
Wall Street analysts forecast ZWS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZWS is 51.33 USD with a low forecast of 45 USD and a high forecast of 58 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast ZWS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZWS is 51.33 USD with a low forecast of 45 USD and a high forecast of 58 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 46.520
Current: 46.520
