Investing on Ocean Cleanup: 3 Stocks Making Waves
Climate change is a topic at the forefront of many people’s minds, along with the lasting impact that may come with a warming planet in this growing push to reduce greenhouse gas emissions and improve the environment. Many different companies have been leading clean water initiatives to reduce the pollution of our oceans.
Below, I discuss three different companies that operate as wastewater and environmental managers and help to reduce the overall pollution in our environment.
Tetra Tech (TTEK)
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Tetra Tech (NASDAQ:TTEK), based in Pasadena, California, is a project management company that engages in government and commercial services. Tetra Tech provides water treatment services, waste management, infrastructure development and greenhouse gas assessments, as well as services geared toward climate change solutions.
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It released the earnings report for the fourth quarter of fiscal 2023 results in mid-November. It stated that total revenue grew by 40%, and net revenue was up by 44% compared to the previous year. They also expect double-digit growth in revenue and earnings per share within the fiscal year 2024.
On Nov. 28, Tetra Tech reported that they were awarded a program providing drinking water as well as wastewater management by the leading water utility in the Republic of Ireland, Uisce Éireann, which provides eighty percent of Ireland with drinking water.
Tetra Tech has seen an increase in their share price by 13% year-to-date due to continued positive financial results and their handful of awarded contracts in recent months. This serves as a reminder to investors that the company is continuing to grow and offering quality management services.
Xylem (XYL)
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Xylem (NYSE:XYL) is an industrial machinery company that is located in Washington D.C. It produces wastewater pumps, filters, heat exchangers, pipe fittings, mixing equipment, hydro turbines and other water treatment and infrastructure equipment for the U.S., Europe, and Asia. Xylem also offers data analytics software for water management purposes.
On Oct. 31, Xylem announced its third-quarter earnings results, which stated that total revenue grew by 50% and its net income grew over 12-fold since the third quarter of 2022. The company saw a robust operational performance and increased product demand during this quarter. There have also been promising results following their acquisition of Evoqua, a water treatment company, for an all-stock transaction of $7.5 billion back in May. Xylem also slightly raised its full-year guidance for the remainder of the year.
Xylem is a large company within the wastewater and environmental services industry, and it offers investors a stable company that has seen quite a few recent events that have positively shaped the company. And with continued expectations that their financial performance will strengthen in the near future, this one is a good pick for investors.
Pentair (PNR)
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Pentair (NYSE:PNR) that are based in London, England, and provides industrial flow technology and commercial and residential pool equipment. Pentair’s products include filters, automatic cleaners, heaters, pressure tanks, control valves, turbine pumps, fluid delivery systems, agriculture irrigation equipment, wastewater handling equipment and oil and natural gas separators.
Within this last year, their share price has surged by 49%. On Nov. 24, they released their earnings result for the third quarter, which stated that total revenue dropped slightly by 4% and net income rose by 14% compared to the previous year. Following the lackluster earnings report, their share price dropped somewhat but has since recovered.
Pentair has seen a large rally in 2023 due to strong fundamentals and improved operating margins, which have grown by 22% within the time period mentioned above. Investors should keep a close eye on this company in the near term.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
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