Water is an essential commodity, like gold and oil. It is a critical natural resource on the planet that seems to be depleting. Therefore, investors have the opportunity to invest in water through stocks of water utility companies. These stocks are known as water stocks.
Water, as a resource, is becoming scarce in recent times. We all knows how necessary water is; we need it for agriculture, food, and much more. Due to the water shortage, water stocks have become interesting and attractive investment avenues. The companies that top the list of water stocks include the water bottling companies as due to the lack of clean drinking water, water bottling companies are gaining significance. The next on the list is the water treatment and distribution companies.
Water stocks have been performing well in the past few years, with 2019 as a solid year. Water stocks have outperformed the broader market to a large extent.
|AWK||American Water Works Company, Inc.||$173.96||13.70%||31.6B|
|SBS||Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP||$6.49||-13.58%||4.5B|
|AWR||American States Water Company||$90.56||19.47%||3.3B|
|CWT||California Water Service Group||$59.93||31.08%||3.1B|
|MSEX||Middlesex Water Company||$108.11||61.79%||1.9B|
|YORW||The York Water Company||$48.07||9.75%||629.4M|
|ARTNA||Artesian Resources Corporation||$39.78||13.27%||372.6M|
|PCYO||Pure Cycle Corporation||$15.47||78.23%||369.9M|
|GWRS||Global Water Resources, Inc.||$18.80||74.24%||425.3M|
|CWCO||Consolidated Water Co. Ltd.||$10.74||5.81%||163.4M|
|AOS||A.O. Smith Corporation||$69.98||35.99%||11.1B|
|AQUA||Evoqua Water Technologies Corp.||$40.68||71.94%||4.9B|
|BMI||Badger Meter, Inc.||$103.49||40.82%||3.0B|
|AQN||Algonquin Power & Utilities Corp.||$14.53||-3.52%||11.1B|
|ERII||Energy Recovery, Inc.||$20.11||128.00%||1.1B|
|FELE||Franklin Electric Co., Inc.||$85.50||44.87%||4.0B|
|GRC||The Gorman-Rupp Co.||$40.28||30.86%||1.1B|
|MLI||Mueller Industries, Inc.||$52.35||84.66%||3.0B|
|MWA||Mueller Water Products, Inc.||$16.18||55.13%||2.6B|
|ROP||Roper Technologies, Inc.||$485.36||32.07%||51.2B|
|TTC||The Toro Co.||$94.30||15.17%||10.0B|
|TTEK||Tetra Tech, Inc.||$172.73||70.24%||9.3B|
|VMI||Valmont Industries, Inc.||$228.50||62.30%||4.9B|
|WTS||Watts Water Technologies, Inc.||$185.13||67.64%||6.2B|
|WTTR||Select Energy Services, Inc.||$6.31||113.18%||681.4M|
Factors To Consider Before Investing In Water Stocks
Investors must be aware that the government and other regulatory bodies regulate most of the water companies. Therefore, water stocks are subject to high volatility depending on the new rules and regulations surrounding the industry.
At the same time, investors must also consider the overall strength and fundamentals of the company before investing in water stocks. Such fundamentals include annual revenues, geographical diversity, competitive advantages, and contracts with government bodies.
Investors must also consider whether they want to invest in stocks of regulated or non-regulated water companies, as both have their pros and cons. The other factors to be considered include the dividend yield of water stocks and whether they are undervalued or overvalued.
Which Water Stocks Should I Buy?
A vast majority of water stocks trade on the stock exchanges. They belong to different water utility companies in the sector, with varying regulatory impacts, long-term gains, and short-term returns. Among the topwater stocks, we have aggregated a list of the best water stocks for you to pick from.
Water stocks are generally stable and long-term investments. They belong to stable and established companies that hold strong potential to generate long-term capital gains, in addition to regular dividend payments for investors.