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Bull of the Day: Badger Meter (BMI)

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Badger Meter (BMI - Free Report) , a current Zacks Rank #1 (Strong Buy), is a global provider of industry-leading water solutions that include flow measurement, quality, and other system parameters. Its offerings provide customers with the data and analytics essential to optimize their operations and contribute to the sustainable use and protection of water.

Analysts have raised their earnings expectations across the board.

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In addition to favorable earnings estimate revisions, the stock resides in the Zacks Instruments – Control industry, currently ranked in the top 37% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.

Badger Meter

Badger Meter shares have displayed a nice level of relative strength over the last three months, gaining 26% compared to the S&P 500’s 3% gain. Shares popped post-earnings following its latest release, with investors pleased with the results.

 

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Image Source: Zacks Investment Research

Concerning the above-mentioned release, BMI exceeded the Zacks Consensus EPS estimate by nearly 17% and posted sales 7% ahead of the consensus, reflecting growth rates of 50% and 24%, respectively. The company’s sales growth has remained considerably strong over the last several years, as we can see below.

Zacks Investment Research
Image Source: Zacks Investment Research

Income-focused investors could also be interested, with BMI shares currently yielding 0.6% annually. And the company has consistently increasingly rewarded its shareholders, boasting a 12% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

Consensus expectations for its current fiscal year suggest 24% higher earnings on 14% higher sales, with FY25 expectations alluding to an additional 10% pop in earnings paired with a 4% sales climb.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Badger Meter (BMI - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 


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