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LECO vs ZWS
Which Stock Would AI Choose? Lincoln Electric Holdings (LECO) vs. Zurn Elkay Water Solutions (ZWS) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: LECO is the current AI-preferred choice, supported by stronger relative momentum, a beat-and-raise quarter, and a cluster of upward analyst revisions.
- LECO delivered roughly 15% year-over-year revenue growth and a record adjusted EPS in its latest quarter, powered by automation and data center demand.
- ZWS posted solid margin expansion but guided softer for the next quarter, triggering a negative near-term market reaction despite an earnings beat.
- The two companies serve different industrial end markets, making this stock comparison useful for investors weighing cyclical manufacturing exposure against steadier water infrastructure demand.
- For deeper detail on each name, explore LECO Major News and LECO Today's Price Move, or ZWS Major News and ZWS Today's Price Move.
- To see which strategies are favored across the broader market right now, explore the Trending AI Robots page.
Introduction
Lincoln Electric Holdings (LECO) and Zurn Elkay Water Solutions (ZWS) are both established industrial manufacturers, yet they operate in fundamentally different niches. LECO is a leading maker of welding, cutting, and brazing equipment with a growing automation franchise, while ZWS is a pure-play water management business focused on water safety, flow systems, and filtered drinking water. This stock comparison is most relevant to traders and investors seeking to assess relative performance between a cyclical capital-goods leader and a steadier, specification-driven water infrastructure name. By examining recent market positioning, growth drivers, and sentiment, readers can better understand how each company is navigating the current environment.
LECO Overview and Recent Performance
LECO, or Lincoln Electric Holdings, designs and manufactures welding, cutting, and brazing products, and has expanded into automation and intelligent software. In its most recent quarter, sales rose roughly 15% year over year to about $1.22 billion, while adjusted earnings per share (EPS) reached a record level and beat consensus estimates. The company has cited resurgent industrial production and rising demand tied to data center projects and HVAC (heating, ventilation, and air conditioning) markets as key drivers. Automation sales have been a particular bright spot, supported by a record backlog and elevated quoting activity.
Recent market activity has reflected this momentum, with multiple sell-side firms raising their price targets following the earnings release. At the same time, input cost inflation and supply chain pressures have compressed gross margin, a headwind management is addressing through pricing actions. The company also raised its quarterly dividend by roughly 10%, signaling confidence in cash generation.
ZWS Overview and Recent Performance
ZWS, or Zurn Elkay Water Solutions, is a growth-oriented, pure-play water management company headquartered in Milwaukee. Its portfolio spans water safety and control products, flow systems, hygienic products, and filtered drinking water solutions. In its latest quarter, net sales increased 8.7% year over year to about $495 million, while adjusted EPS modestly exceeded consensus. Notably, operating margin improved to roughly 21.9%, up from 17% a year earlier, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin reached about 28.3%.
Despite these gains, the stock reacted negatively because forward revenue guidance came in slightly below expectations, reflecting softer nonresidential construction activity and the cycling of prior tariff-driven price increases. The company continues to expand into adjacent markets, including commercial hot water through the Intellihot acquisition and a new digital mixing valve platform. ZWS also raised its annual dividend by 18% and repurchased shares, underscoring a flexible balance sheet.
Trending AI Robots
Tickeron operates hundreds of AI trading bots that monitor and trade thousands of different tickers, each with its own trading style, strategy, timeframe, performance history, and target list. Because not every bot suits every market environment, Tickeron curates only the most relevant and best-performing strategies into its Trending AI Robots section. This page highlights the bots currently aligned with prevailing market conditions, giving traders a focused view of which automated approaches are gaining traction. With a wide range of configurations available, the platform lets users compare bots across criteria such as win rate, trade frequency, and drawdown. If you are evaluating how AI-driven signals might complement your own research on names like LECO and ZWS, reviewing the Trending AI Robots page is a practical next step.
Head-to-Head Comparison
The clearest contrast between these two stocks is their end-market exposure. LECO is tied to the industrial and manufacturing cycle, with heavy exposure to automotive, general fabrication, and, increasingly, data center and automation demand. This gives it greater cyclical upside but also more sensitivity to capital spending swings and input cost inflation. ZWS, by contrast, benefits from more predictable, specification-driven demand in water infrastructure and nonresidential construction, though it currently faces softer near-term end markets.
In terms of recent momentum, LECO has the edge: it beat expectations and raised its full-year outlook, while ZWS beat on profit but guided below consensus, prompting a sell-off. On profitability, ZWS demonstrates stronger operating margins and free cash flow conversion, while LECO offers larger scale and a faster-growing automation segment. Risk factors also differ, with LECO exposed to commodity and component costs and ZWS to construction-cycle softness and moderating price realization.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative momentum, and the direction of recent catalysts, Tickeron's AI would likely favor LECO in the current environment. LECO's beat-and-raise quarter, record adjusted EPS, and wave of upward price-target revisions indicate stronger near-term positioning than ZWS, whose cautious guidance has weighed on sentiment. The AI's preference reflects probabilistic analysis rather than a definitive forecast, and it is grounded in the contrast between LECO's accelerating volume growth and ZWS's softer forward outlook. Both names remain fundamentally sound, but the current alignment of momentum, catalysts, and analyst sentiment tilts the comparison toward LECO.
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 disclaimer.
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 Buy and ZWS is a StrongBuy.
LECO's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for LECO turned positive on October 27, 2026. Looking at past instances where LECO's MACD turned positive, the stock continued to rise in 29 of 42 cases over the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on LECO as a result. In 51 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
LECO moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LECO crossed bullishly above the 50-day moving average on October 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +4.52% 3-day Advance, the price is estimated to grow further. Considering data from situations where LECO advanced for three days, in 223 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 177 of 305 cases where LECO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
Bearish Trend Analysis
The 10-day RSI Indicator for LECO moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In 18 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 51%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 32 of 62 cases where LECO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 52%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LECO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
LECO broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 20 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron SMR rating for this company is 27 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. LECO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LECO's P/B Ratio (9.657) is very high in comparison to the industry average of (3.143). P/E Ratio (27.289) is within average values for comparable stocks, (22.467). Projected Growth (PEG Ratio) (1.531) is also within normal values, averaging (1.020). Dividend Yield (0.011) settles around the average of (0.018) among similar stocks. P/S Ratio (3.155) is also within normal values, averaging (2.217).
ZWS in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 28, 2026
ZWS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 28 of 35 cases where ZWS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ZWS's RSI Indicator exited the oversold zone, 26 of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZWS advanced for three days, in 184 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 132 of 204 cases where ZWS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZWS as a result. In 48 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
The Moving Average Convergence Divergence Histogram (MACD) for ZWS turned negative on October 28, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 25 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
ZWS moved below its 50-day moving average on October 28, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ZWS crossed bearishly below the 50-day moving average on November 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZWS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 51 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 70 (best 1 - 100 worst), indicating slightly worse than average price growth. ZWS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 77 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.346) is normal, around the industry mean (10.189). P/E Ratio (26.506) is within average values for comparable stocks, (-16.372). Projected Growth (PEG Ratio) (1.523) is also within normal values, averaging (0.975). Dividend Yield (0.010) settles around the average of (0.050) among similar stocks. P/S Ratio (4.373) is also within normal values, averaging (251.106).
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
LECO | ZWS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 83 | 80 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 77 Overvalued | |
PROFIT vs RISK RATING 1..100 | 20 | 59 | |
SMR RATING 1..100 | 27 | 51 | |
PRICE GROWTH RATING 1..100 | 47 | 70 | |
P/E GROWTH RATING 1..100 | 31 | 85 | |
SEASONALITY SCORE 1..100 | 50 | 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.
ZWS's Valuation (77) in the Industrial Machinery industry is in the same range as LECO (88). This means that ZWS’s stock grew similarly to LECO’s over the last 12 months.
LECO's Profit vs Risk Rating (20) in the Industrial Machinery industry is somewhat better than the same rating for ZWS (59). This means that LECO’s stock grew somewhat faster than ZWS’s over the last 12 months.
LECO's SMR Rating (27) in the Industrial Machinery industry is in the same range as ZWS (51). This means that LECO’s stock grew similarly to ZWS’s over the last 12 months.
LECO's Price Growth Rating (47) in the Industrial Machinery industry is in the same range as ZWS (70). This means that LECO’s stock grew similarly to ZWS’s over the last 12 months.
LECO's P/E Growth Rating (31) in the Industrial Machinery industry is somewhat better than the same rating for ZWS (85). This means that LECO’s stock grew somewhat faster than ZWS’s over the last 12 months.
| LECO | ZWS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 51% | 1 day ago 74% |
| Stochastic ODDS (%) | 1 day ago 52% | 1 day ago 68% |
| Momentum ODDS (%) | 1 day ago 62% | 1 day ago 57% |
| MACD ODDS (%) | 1 day ago 69% | 1 day ago 56% |
| TrendWeek ODDS (%) | 1 day ago 59% | 1 day ago 63% |
| TrendMonth ODDS (%) | 1 day ago 63% | 1 day ago 60% |
| Advances ODDS (%) | 1 day ago 65% | 12 days ago 61% |
| Declines ODDS (%) | 6 days ago 58% | 5 days ago 61% |
| BollingerBands ODDS (%) | 1 day ago 55% | 1 day ago 80% |
| Aroon ODDS (%) | 1 day ago 58% | 1 day ago 65% |
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 overvalued. 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 3 FA rating(s) are green while ZWS’s FA Score has 0 green FA rating(s).
- LECO’s FA Score: 3 green, 2 red.
- ZWS’s FA Score: 0 green, 5 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 6 TA indicator(s) are bullish while ZWS’s TA Score has 5 bullish TA indicator(s).
- LECO’s TA Score: 6 bullish, 4 bearish.
- ZWS’s TA Score: 5 bullish, 5 bearish.
Price Growth
LECO (@Tools & Hardware) experienced а -0.37% price change this week, while ZWS (@Industrial Specialties) price change was +1.14% for the same time period.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -3.75%. For the same industry, the average monthly price growth was +1.03%, and the average quarterly price growth was +1.54%.
The average weekly price growth across all stocks in the @Industrial Specialties industry was +1.95%. For the same industry, the average monthly price growth was -4.12%, and the average quarterly price growth was -19.05%.
Reported Earning Dates
LECO is expected to report earnings on Feb 18, 2027.
ZWS is expected to report earnings on Feb 09, 2027.
Industries' Descriptions
@Tools & Hardware (-3.75% 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 Specialties (+1.95% weekly)Companies in the industrial specialties industry process basic materials and minerals into various specialty products, such as flat and safety glass, fire retardant products, paints and coatings. Examples of companies operating in this industry are Sherwin-Williams Company, PPG Industries, Inc. and RPM International Inc.
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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% | +3.30% | ||
| GGG - LECO | 74% Closely correlated | +2.89% | ||
| DOV - LECO | 73% Closely correlated | +4.48% | ||
| DCI - LECO | 73% Closely correlated | +4.60% | ||
| ZWS - LECO | 70% Closely correlated | +3.93% | ||
| FELE - LECO | 70% Closely correlated | +2.98% | ||
More | ||||
ZWS and
Correlation & Price change
A.I.dvisor indicates that over the last year, ZWS has been closely correlated with XYL. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if ZWS jumps, then XYL could also see price increases.
| Ticker / NAME | Correlation To ZWS | 1D Price Change % | ||
|---|---|---|---|---|
| ZWS | 100% | +3.93% | ||
| XYL - ZWS | 74% Closely correlated | +1.46% | ||
| LECO - ZWS | 70% Closely correlated | +3.30% | ||
| HLIO - ZWS | 67% Closely correlated | +4.30% | ||
| HLMN - ZWS | 67% Closely correlated | +0.72% | ||
| PNR - ZWS | 65% Loosely correlated | +3.05% | ||
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