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Bull of the Day: Montrose Environmental (MEG)

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Sometimes the best stocks aren’t the sexiest stocks. Sometimes they are in industries that nobody ever wants to talk about rather than the hot spots like AI and lithium. Today’s Bull of the Day is one of these boring stocks in a boring industry. But, there’s nothing boring about the profits the company is making or the regulatory tailwinds that are helping it along.

Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Montrose Environmental Group ((MEG - Free Report) ). Montrose isn’t your average “testing” company. This is a full-stack environmental services platform that combines consulting, lab testing, air measurement, remediation, and now renewable energy solutions. Whether it’s cleaning up PFAS (“forever chemicals”), monitoring methane, or helping industrial clients meet new EPA guidelines, Montrose is at the forefront of the sustainability megatrend.

The reason for the favorable Zacks Rank is that analysts have come out and increased their earnings estimates for the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from 66 cents to $1.34 while next year’s number is up from 83 cents to $1.36. That’s not just noise. Montrose has quietly beaten earnings expectations in four consecutive quarters, with an average surprise of 15 cents. Revenue growth has remained resilient, expected to climb over 15% this year as industrial demand and regulatory enforcement accelerate.

While the market loves its AI darlings, the real alpha may come from the boring names doing the dirty work. Montrose operates in a sector insulated from economic downturns. Reality is nobody’s cutting back on environmental compliance. In fact, as ESG scrutiny grows, Montrose’s testing and remediation backlog is expanding.

The stock’s technicals are also setting up nicely. It’s come strong off the Liberation Day lows. Recently, the 50-day moving average has been providing a lot of support on the way up. Over the last few days, the stock has been bouncing along the 50-day, approaching the swing high just over $31.


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