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Badger Meter (BMI) Surges 4.0%: Is This an Indication of Further Gains?

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Badger Meter (BMI - Free Report) shares soared 4% in the last trading session to close at $132.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.4% loss over the past four weeks.

The rise in Badger Meter’s share price is supported by long-term demand for digital water solutions and advanced metering infrastructure. Its ORION Cellular, BEACON SaaS and BlueEdge offerings are helping utilities improve network efficiency and customer service. While second-quarter 2026 utility water sales declined 8% year over year, organic utility sales increased 8% sequentially as PRASA and other awarded projects began ramping. Management expects sequential revenue improvement through the rest of 2026, with year-over-year growth weighted toward the fourth quarter. 

The company is also expanding its addressable market through acquisitions such as SmartCover and UDlive, strengthening its presence in sewer, stormwater and wastewater monitoring while increasing exposure to recurring software revenues. Management continues to see replacement demand, cellular AMI adoption and beyond-the-meter technologies as key long-term growth drivers. 

Additionally, Badger Meter remains financially flexible, generating $21.9 million of free cash flow in the second quarter and repurchasing $25.3 million of shares. With roughly $90 million remaining under its buyback authorization and an undrawn $150 million credit facility, Badger Meter has ample capacity to fund innovation, acquisitions and shareholder returns. 

This manufacturer of products that measure gas and water flow is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +1.7%. Revenues are expected to be $240.55 million, up 2.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Badger Meter, the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BMI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Badger Meter is part of the Zacks Instruments - Control industry. Sensata (ST - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $41.95. ST has returned 0.7% in the past month.

Sensata's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.97. Compared to the company's year-ago EPS, this represents a change of +9%. Sensata currently boasts a Zacks Rank of #3 (Hold).

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