Pentair Outlook - Technical Neutrality and Mixed Analyst Signals

Market Snapshot

Headline Takeaway: Pentair (PNR) is in a state of technical neutrality, with no clear directional bias emerging from the past five days of market data.

News Highlights

Here are a few recent developments that could influence the broader market:

• Farm Machinery Industry Eyes Modest Recovery (May 29): Sales of farm equipment in Brazil stabilized in late 2024, showing a 12% rise in revenue through February 2025. While not directly tied to Pentair, this hints at potential tailwinds in industrial and agricultural sectors where Pentair operates.
• Changes to U.S. COVID-19 Vaccine Policy (May 29): The U.S. Department of Health and Human Services revised its guidance on vaccine approvals. While not immediately relevant to Pentair, shifts in public health policy could impact long-term economic conditions and consumer spending.
• Factory Activity in China Slows, but Shows Signs of Recovery (May 31): China’s PMI edged up to 49.5 in May, still below the 50 expansion threshold. A broader economic recovery in Asia could indirectly benefit Pentair’s operations.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 3.90

Weighted Rating Score (Performance-Weighted): 3.54

Ratings Consistency: Analysts show a wide range of views, from "Underperform" to "Strong Buy", indicating a lack of consensus. The recent 20-day average of ratings shows 6 "Buy" calls, 2 "Strong Buy," 1 "Neutral," and 1 "Sell."

Price Trend Alignment: The stock is currently down 0.04% in the recent period, which contrasts with the market's relatively neutral expectation. This suggests some divergence between analysts' views and recent investor sentiment.

Key Fundamental Values and Internal Diagnostic Scores:

• EV/EBIT: 59.99 – Internal diagnostic score: 2.00
• PE Ratio: 125.64 – Internal diagnostic score: 2.00
• Total Operating Revenue (YoY Growth Rate): 80.32% – Internal diagnostic score: 4.00
• Basic Earnings Per Share (YoY Growth Rate): -4.66% – Internal diagnostic score: 2.00
• Cash Flow from Operations (CFOA): 0.09 – Internal diagnostic score: 4.00
• Asset-MV: -0.77 – Internal diagnostic score: 2.00
• Cash-MV: 47.23% – Internal diagnostic score: 2.00
• Profit-MV: -0.39 – Internal diagnostic score: 2.00
• Cash-UP: 24.13% – Internal diagnostic score: 3.00
• Revenue-MV: -41.68% – Internal diagnostic score: 2.00

Money-Flow Trends

Money is flowing into Pentair with both institutional and retail investors showing positive trends. The overall inflow ratio is 51.03%, indicating a slight edge in buyer activity.

• Big Money (Large/Extra-large): Large money shows a negative trend, while extra-large inflow is at 51.28%, suggesting institutional players are mixed in their positions.
• Retail (Small/Medium): Small and medium-sized investors are both showing positive inflows, with ratios of 50.81% and 51.83% respectively.
• Overall Trend: Positive, indicating that investors are generally accumulating shares, but caution is needed due to the mixed institutional signals.

Key Technical Signals

Technically, Pentair is in a wait-and-see phase, with mixed signals:

• MACD Golden Cross: Internal diagnostic score: 7.86 – a strong bullish signal recently, indicating a potential upward trend.
• WR Overbought: Internal diagnostic score: 3.49 – suggesting caution as it shows overbought conditions.
• MACD Death Cross: Internal diagnostic score: 5.76 – a moderate bearish signal.
• Recent Chart Patterns: Over the past five days, on September 4 and 5, the MACD Golden Cross occurred, suggesting potential upward momentum. However, the WR Overbought indicator was repeatedly flagged, indicating overbought caution.
• Technical Insight: The market remains in a state of volatility with no clear direction. Long-term signals are relatively balanced, suggesting investors should monitor the next few days for clearer momentum.

Conclusion

Pentair (PNR) remains in a technical holding pattern, with bullish and bearish signals in balance. While the internal diagnostic scores and fund flows point to a slight buyer advantage, the lack of consensus among analysts and the mixed fundamental picture suggests caution. Investors should consider monitoring the stock for a clearer breakout pattern or waiting for more definitive directional signals before taking action.