Badger Meter (BMI) Surges 35.1% YTD: Will the Uptrend Last?
Badger Meter, Inc BMI is witnessing strong momentum, with shares having gained 35.1% year to date compared with the sub-industry’s growth of 19.6%.
The company provides flow measurement, control and communications solutions, serving water and gas utilities, municipalities and industrial customers worldwide.
The company offers BEACON advanced metering analytics, a secure cloud-hosted software suite that allows consumer engagement tools that permit end water customers to view and manage their water usage activity.
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Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #1 (Strong Buy) stock.
The company’s performance benefited from robust demand across business segments coupled with improving supply-chain dynamics. Continued strength in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service revenues bodes well.
Going ahead, the company is making considerable efforts to reduce its elevated backlog amid an improving operating environment. Apart from this, the company benefits from rising demand for water quality and pressure monitoring systems. In the third quarter of 2023, utility water sales rose 31%, owing to strong customer demand.
Synergies from the acquisition are likely to further drive the company’s top and bottom lines going forward. In January 2023, BMI acquired a UK-based intelligent water monitoring solutions company — Syrinix — for £15 million in an all-cash deal.
The company reported earnings per share (EPS) of 88 cents for third-quarter 2023, beating the Zacks Consensus Estimate by 15.8%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 61 cents. Quarterly net sales increased to $186.2 million from $148 million in the year-ago quarter.
A Look at Estimates
Badger Meter’s EPS is expected to increase 35.8% and 9.1% on a year-over-year basis to $3.07 and $3.35 in 2023 and 2024, respectively.
The Zacks Consensus Estimate for 2023 and 2024 earnings has increased 7.3% and 8.1%, respectively, in the past 90 days, reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 23.1% to $696.4 million. For 2024, the revenues are anticipated to improve 7% to $745.1 million.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1, whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA’s earnings have an average surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have jumped 38% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 27.9% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00. Watts Water’s long-term earnings growth rate is 7.8%.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11.8%. Shares of WTS have rallied 24.2% in the past year.
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Badger Meter, Inc. (BMI) : Free Stock Analysis Report
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