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Badger Meter (BMI) Stock Gains 35% YTD: Will the Uptrend Last?
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Badger Meter, Inc (BMI - Free Report) is witnessing strong momentum, with shares having gained 34.9% year to date compared with the sub-industry’s growth of 21.5%. The company is a leading manufacturer and marketer of water solutions comprising of flow measurement, quality and so on.
Badger Meter’s performance is being driven by robust customer demand and strong order trends across the majority of end-market applications globally. Continued strength in E-Series, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
The company is likely to benefit from increasing customer backlogs and an improving operating environment. Also, effective spending controls and higher sales are likely to help in improving selling, engineering and administration expenses leverage. In the last reported quarter, operating earnings were $25.1 million or 15.7% of sales compared with $18.9 million or 14.2% of sales in the year-earlier quarter.
Image Source: Zacks Investment Research
A strong cash position with no long-term debt and ongoing price realization bode well. Synergies from acquisition are likely to further drive the company’s top and the bottom lines going forward. In January 2023, BMI acquired UK-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal. Syrinix offers leak exposure and pressure monitoring solutions within water distribution and collection networks.
Syrinix’s cloud-powered software platform generates data and customized alerts, and insights to aid asset monitoring in real time for clients. The integration of Syrinix’s solutions will aid Badger Meter to provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Notably, Badger Meter currently carries a Zacks Rank #2 (Buy).
Apart from a favorable rank, BMI has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
Badger Meter’s earnings per share are expected to increase 20.4% and 8.5% on a year-over-year basis to $2.72 and $2.95 in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 revenues has increased 5.8% and 7.3%, respectively, in the past 90 days reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 13.7% to $643.2 million. For 2024, the revenues are anticipated to improve 6.9% to $687.8 million.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 3.8% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have gained 28.6% in the past year.
The consensus mark for Watts Water Technologies’ 2023 earnings is pegged at $7.27 per share, up 2.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 8%.
Watts Water Technologies’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have increased 48.6% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have improved 55.2% in the past year
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Badger Meter (BMI) Stock Gains 35% YTD: Will the Uptrend Last?
Badger Meter, Inc (BMI - Free Report) is witnessing strong momentum, with shares having gained 34.9% year to date compared with the sub-industry’s growth of 21.5%. The company is a leading manufacturer and marketer of water solutions comprising of flow measurement, quality and so on.
Badger Meter’s performance is being driven by robust customer demand and strong order trends across the majority of end-market applications globally. Continued strength in E-Series, ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues acted as major tailwinds.
The company is likely to benefit from increasing customer backlogs and an improving operating environment. Also, effective spending controls and higher sales are likely to help in improving selling, engineering and administration expenses leverage. In the last reported quarter, operating earnings were $25.1 million or 15.7% of sales compared with $18.9 million or 14.2% of sales in the year-earlier quarter.
Image Source: Zacks Investment Research
A strong cash position with no long-term debt and ongoing price realization bode well. Synergies from acquisition are likely to further drive the company’s top and the bottom lines going forward. In January 2023, BMI acquired UK-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal. Syrinix offers leak exposure and pressure monitoring solutions within water distribution and collection networks.
Syrinix’s cloud-powered software platform generates data and customized alerts, and insights to aid asset monitoring in real time for clients. The integration of Syrinix’s solutions will aid Badger Meter to provide its clients with an expanded portfolio that will aid in preserving precious resources like water and improve asset life.
Notably, Badger Meter currently carries a Zacks Rank #2 (Buy).
Apart from a favorable rank, BMI has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
Badger Meter’s earnings per share are expected to increase 20.4% and 8.5% on a year-over-year basis to $2.72 and $2.95 in 2023 and 2024, respectively.
The Zacks Consensus Estimate for 2023 and 2024 revenues has increased 5.8% and 7.3%, respectively, in the past 90 days reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 13.7% to $643.2 million. For 2024, the revenues are anticipated to improve 6.9% to $687.8 million.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Watts Water Technologies (WTS - Free Report) and Cadence Design Systems (CDNS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 3.8% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have gained 28.6% in the past year.
The consensus mark for Watts Water Technologies’ 2023 earnings is pegged at $7.27 per share, up 2.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 8%.
Watts Water Technologies’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have increased 48.6% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have improved 55.2% in the past year