On Apr 6, 2016, Zacks Investment Research upgraded Xylem Inc. XYL by a notch to a Zacks Rank #2 (Buy). Going by the Zacks model, companies with a Zacks Rank #2 are likely to perform better than the broader market over the next few quarters.Why the Upgrade?Increased demand for water infrastructure and wastewater services is strengthening Xylem’s public utility business over time. Also, greater demand in the U.S. market as well as high demand for industrial water market applications is boosting the company’s top line significantly. Xylem is also trying all means to improve its revenues and margins through the execution of strategic acquisitions. For instance, the newly acquired analytics solutions organization, Tideland Signal Corporation, is expected to fortify the company’s business in the costal and ocean markets. At the same time, the company is improving its operational efficacy and boosting margins through the implementation of advanced analytics solutions. Aided by the benefits of these measures, the company expects to generate adjusted earnings per share in the range of $1.95–$2.05 for full-year 2016, reflecting 5–11% year-over-year growth. Meanwhile, revenues for full-year 2016 are expected to be close to $3.7 billion, mirroring 2–4% year-over-year organic revenue growth.Other Stocks to ConsiderOther favorably ranked stocks in the same space are Colfax Corporation CFX, Nordson Corporation NDSN and Parker-Hannifin Corporation PH. All the three companies carry the same Zacks Rank as Xylem.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 >>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 PARKER HANNIFIN (PH): Free Stock Analysis Report NORDSON CORP (NDSN): Free Stock Analysis Report COLFAX CORP (CFX): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research