Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, water industry equipment specialist Xylem (NYSE: XYL) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Xylem's business and see what CAPS investors are saying about the stock right now.

Xylem facts

Headquarters (founded) White Plains, N.Y. (1995)
Market Cap $5.2 billion
Industry Industrial machinery
Trailing-12-Month Revenue $3.8 billion
Management CEO Gretchen McClain
CFO Michael Speetzen
Trailing-12-Month Return on Equity 12.3%
Cash/Debt $318.0 million / $1.2 billion
Dividend Yield 1.4%
Competitors Flowserve
Pentair
SPX Flow Technology

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, all 44 members who have rated Xylem believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, youngblood58, touched on the strong tailwinds working in Xylem's favor:

Water is our most precious commodity, and yet many people don't realize how commoditized it will become as the world's population explodes and the demand for potable water increases. In fact, it will definitely be a crisis of the 21st Century [in my opinion].

This company is a good "one-stop shop" in terms of water purification, production, distribution, etc. and I am investing in it as a long term strategy.   

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Xylem may not be your top choice.

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