Xylem Inc. XYL is benefiting from strong backlogs owing to the underlying demand despite headwinds from cost inflation and higher strategic investments. Demand for its products remains robust owing to the essential nature of its business. Also, pricing actions to mitigate cost inflation are supporting its bottom line.Xylem anticipates 2022 revenues to increase approximately 4% on a reported basis and 9-10% on an organic basis from the prior-year levels. XYL had earlier expected organic revenues and reported revenues to increase 8-10% and 3-5%, respectively, from the corresponding year-ago reported figures. Xylem’s Water Infrastructure segment is benefiting from robust transport demand in Western Europe, effective price realization and healthy activity in the wastewater utility business in the United States and Western Europe.Strong price realization and backlog execution in the industrial, commercial and residential end markets are aiding its Applied Water segment. Measurement & Control Solutions is benefiting from strong demand in the advanced metering infrastructure (AMI) end market and a modest improvement in chip supply.XYL is committed to rewarding its shareholders handsomely with dividend payments and share buybacks. In the first nine months of 2022, Xylem paid out dividends worth $163 million, up 7.2% year over year. It also repurchased shares worth $52 million in the same period. The dividend rate was hiked 7% in February 2022.In light of the above-mentioned positives, we believe, investors should hold on to the Xylem stock for now, as suggested by its current Zacks Rank #3 (Hold).Image Source: Zacks Investment ResearchIn the past six months, the stock has surged 32.1% compared with the industry’s growth of 9.2%.Key PicksSome better-ranked companies from the Industrial Products sector are discussed below:Enerpac Tool Group Corp. EPAC delivered an average four-quarter earnings surprise of 3.4%. EPAC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The stock has gained 21.8% in the past six months.Applied Industrial Technologies, Inc. AIT presently has a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 24.8%, on average.AIT’s earnings estimates have increased 3% for fiscal 2023 (ending June 2023) in the past 60 days. Shares of Applied Industrial have risen 27.8% in the past six months.IDEX Corporation IEX presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.In the past 60 days, IDEX’s earnings estimates have increased 1.8% for 2022. The stock has rallied 23.2% in the past six months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report Xylem Inc. (XYL): Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research