Xylem Stock: An Investment in Value or Growth?

Water cannot leave our planet and it does not arrive from space. The amount of water available on earth always stays the same, it’s the availability of water that changes. In Bangladesh, small villages use packs of pills distributed by NGOs to purify pond water and make it drinkable. In Pacific Island countries, expensive desalination plants transform sea water into fresh water. Ultimately, we can imagine a future where water can be extracted from anywhere in an economical fashion. Until then, investing in water infrastructure seems like a compelling growth thesis.

Desalination is an attractive investment thesis, but there aren’t many pure-play desalination stocks out there. In fact, there aren’t many good ways to invest in water, period. That’s why Xylem (XYL) stood out when we last covered them in a piece titled Investing in Smart Water Technology with Xylem.

Revisiting Xylem Stock

Xylem has been spending big bucks over the years to solidify its place in smart water technology while offering retail investors some interesting exposure to water scarcity and the Internet of Things (IoT). That’s the conclusion we reached three years ago, and today we’re able to buy shares at around a 12%