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LECO vs XYL
Which Stock Would AI Choose? Lincoln Electric Holdings (LECO) vs. Xylem (XYL) Stock Comparison
Key Takeaways
- LECO has delivered a robust 41.4% one-year return, significantly outpacing XYL's 6.35%, highlighting stronger momentum in recent market activity.
- XYL boasts a larger market capitalization of $29.5 billion compared to LECO's $14.25 billion, reflecting broader scale in water technology.
- Both stocks exhibit similar trailing P/E ratios (price-to-earnings ratios) around 28-31, but LECO shows higher return on equity (ROE) at 37% versus XYL's 8.4%.
- Recent analyst sentiment points to earnings beats for both, with LECO poised for growth amid industrial recovery signals.
- XYL benefits from infrastructure tailwinds in water management, while LECO leverages welding demand in manufacturing.
- Diversified AI trading bots on Tickeron show strong performance in industrials, relevant for both stocks' sector exposure.
Introduction
Lincoln Electric Holdings (LECO) and Xylem (XYL) operate in the industrials sector, with LECO focusing on welding and cutting equipment and XYL specializing in water technology solutions. This stock comparison is relevant for investors seeking exposure to manufacturing automation and infrastructure growth amid economic recovery trends. Traders analyzing relative performance may find value in their contrasting momentum, valuations, and catalysts. Both companies have demonstrated resilience in recent market volatility, offering insights into sector rotation opportunities and risk-reward trade-offs in the current environment.
LECO Overview and Recent Performance
Lincoln Electric Holdings (LECO), a leader in arc welding equipment and consumables, serves manufacturing, construction, and fabrication industries globally. In recent weeks, LECO shares have traded around $260, within a 52-week range of $170-$310, reflecting solid positioning after a 41.4% one-year gain and 8.85% year-to-date (YTD) advance. Key influences include a 'Prime' ESG rating from ISS STOXX, dividend declaration of $0.79 per share, and anticipation for Q1 2026 earnings on April 30, where analysts expect EPS of $2.43. Sentiment has been buoyed by earnings beats, like Q4 2025's $2.65 EPS surpassing estimates, amid stabilizing industrial demand.
XYL Overview and Recent Performance
Xylem (XYL) provides water transport, treatment, and testing solutions for utilities, industry, and residential markets. Shares recently hovered near $121, in a 52-week range of $114-$154, with a 10.51% YTD rise but only 6.35% over one year. Performance reflects broader infrastructure support, with Q4 2025 revenue up 7.5% to $2.4 billion and EPS of $1.42. Upcoming Q1 2026 results on April 28 anticipate $2.11 billion revenue and $1.09 EPS. Positive factors include investor conference participation and a $1.5 billion share repurchase authorization, though recent analyst target cuts signal caution amid market shifts.
Trending AI Robots
Tickeron’s Trending AI Robots page showcases the top performers from its library of 351 AI Trading Bots, which analyze thousands of tickers across diverse strategies, timeframes, and sectors like industrials and infrastructure. Only 25 bots earn a spot here based on current market suitability, boasting annualized returns from 15% to 167%, win rates of 48% to 88%, and profit factors up to 11.7. These include pattern-based swing traders and trend-following agents trading relevant names in industrials. With varying risk profiles and real-time signals, they offer data-driven insights for copy trading. Traders can explore these high-probability options to enhance strategies in volatile conditions.
Head-to-Head Comparison
LECO’s business model centers on high-margin welding products with strong ROE (return on equity), contrasting XYL’s asset-intensive water infrastructure focus yielding lower ROE but higher revenue scale. Growth drivers differ: LECO benefits from manufacturing automation and ESG advancements, while XYL rides water reuse and utility spending. Recent momentum favors LECO’s 41% one-year surge over XYL’s modest gains, though XYL edges YTD. Risk factors include LECO’s higher beta (1.29) signaling greater volatility versus XYL’s 1.17; both face industrial cyclicality. Sector exposure overlaps in industrials but diverges in end-markets, with market sentiment tilting toward LECO’s earnings consistency amid relative performance scrutiny.
Tickeron AI Verdict
Tickeron’s AI analysis leans toward LECO in the current environment, driven by superior trend consistency, higher one-year returns, and robust profitability metrics like elevated ROE. While XYL offers stability and scale with infrastructure catalysts, LECO’s relative momentum and upcoming earnings potential position it more favorably for probabilistic outperformance among industrials.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LECO is a StrongBuy and XYL is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LECO’s FA Score shows that 2 FA rating(s) are green whileXYL’s FA Score has 1 green FA rating(s).
- LECO’s FA Score: 2 green, 3 red.
- XYL’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LECO’s TA Score shows that 5 TA indicator(s) are bullish while XYL’s TA Score has 6 bullish TA indicator(s).
- LECO’s TA Score: 5 bullish, 4 bearish.
- XYL’s TA Score: 6 bullish, 2 bearish.
Price Growth
LECO (@Tools & Hardware) experienced а +2.49% price change this week, while XYL (@Industrial Machinery) price change was +0.72% for the same time period.
The average weekly price growth across all stocks in the @Tools & Hardware industry was +0.18%. For the same industry, the average monthly price growth was +6.96%, and the average quarterly price growth was +15.78%.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.40%. For the same industry, the average monthly price growth was +5.68%, and the average quarterly price growth was +9.97%.
Reported Earning Dates
LECO is expected to report earnings on Aug 05, 2026.
XYL is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Tools & Hardware (+0.18% weekly)Tools & Hardware industry includes companies that manufacture security products, storage cabinets, steel rules and tapes, calipers, shoe hook fasteners, lumber, structural materials and other related supplies. Stanley Black & Decker, Inc., Snap-on Incorporated and L.S. Starrett Company are some of the largest, established players in this industry. The industry is also seeing rapid growth in online sales. The proliferation of do-it-yourself (DIY) projects has boosted industry demand. But oil price volatility poses potential risks to this industry, particularly to e-commerce companies which spend on services of shipping companies, which might alter charges based on oil price movements.
@Industrial Machinery (+1.40% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| LECO | XYL | LECO / XYL | |
| Capitalization | 14.7B | 26.2B | 56% |
| EBITDA | 849M | 1.8B | 47% |
| Gain YTD | 14.935 | -17.324 | -86% |
| P/E Ratio | 28.35 | 27.80 | 102% |
| Revenue | 4.35B | 9.09B | 48% |
| Total Cash | 299M | 808M | 37% |
| Total Debt | 1.31B | 2.06B | 64% |
LECO | XYL | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 19 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 84 Overvalued | 21 Undervalued | |
PROFIT vs RISK RATING 1..100 | 26 | 95 | |
SMR RATING 1..100 | 25 | 75 | |
PRICE GROWTH RATING 1..100 | 45 | 60 | |
P/E GROWTH RATING 1..100 | 40 | 70 | |
SEASONALITY SCORE 1..100 | 90 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
XYL's Valuation (21) in the Industrial Machinery industry is somewhat better than the same rating for LECO (84). This means that XYL’s stock grew somewhat faster than LECO’s over the last 12 months.
LECO's Profit vs Risk Rating (26) in the Industrial Machinery industry is significantly better than the same rating for XYL (95). This means that LECO’s stock grew significantly faster than XYL’s over the last 12 months.
LECO's SMR Rating (25) in the Industrial Machinery industry is somewhat better than the same rating for XYL (75). This means that LECO’s stock grew somewhat faster than XYL’s over the last 12 months.
LECO's Price Growth Rating (45) in the Industrial Machinery industry is in the same range as XYL (60). This means that LECO’s stock grew similarly to XYL’s over the last 12 months.
LECO's P/E Growth Rating (40) in the Industrial Machinery industry is in the same range as XYL (70). This means that LECO’s stock grew similarly to XYL’s over the last 12 months.
| LECO | XYL | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 51% |
| Stochastic ODDS (%) | 2 days ago 52% | 2 days ago 58% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 63% |
| MACD ODDS (%) | 2 days ago 66% | 2 days ago 47% |
| TrendWeek ODDS (%) | 2 days ago 65% | 2 days ago 55% |
| TrendMonth ODDS (%) | 2 days ago 61% | 2 days ago 52% |
| Advances ODDS (%) | 8 days ago 62% | 2 days ago 55% |
| Declines ODDS (%) | 16 days ago 56% | 16 days ago 59% |
| BollingerBands ODDS (%) | 2 days ago 47% | 2 days ago 67% |
| Aroon ODDS (%) | 2 days ago 50% | 2 days ago 43% |
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LECO and
Correlation & Price change
A.I.dvisor indicates that over the last year, LECO has been closely correlated with GGG. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if LECO jumps, then GGG could also see price increases.
| Ticker / NAME | Correlation To LECO | 1D Price Change % | ||
|---|---|---|---|---|
| LECO | 100% | -0.25% | ||
| GGG - LECO | 74% Closely correlated | -0.68% | ||
| DOV - LECO | 73% Closely correlated | +2.61% | ||
| DCI - LECO | 73% Closely correlated | +0.50% | ||
| ZWS - LECO | 70% Closely correlated | -0.68% | ||
| FELE - LECO | 70% Closely correlated | +0.22% | ||
More | ||||
XYL and
Correlation & Price change
A.I.dvisor indicates that over the last year, XYL has been closely correlated with ZWS. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if XYL jumps, then ZWS could also see price increases.