Investors are clearly expecting improvements in the housing market to continue, and that enthusiasm is helping to push Mueller Water Products (MWA) to a new 52-week high. I don't consider this altogether surprising, as I wrote
about six months ago that Wall Street would likely stay on this name so
long as the prospects for improved revenue growth and margin leverage
remained tenable. While it is harder and harder to see long-term
intrinsic value in the shares unless the housing recovery really
surprises to the good, momentum and near-term profit growth prospects
could take these shares into the low to mid teens.
Follow this link for more:
Mueller Water Tapped Into Wall Street's Housing Hopes
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