Investor sentiment can be a funny thing, but if you don’t consider it, then a lot of stock moves will make no sense to you. The action in water stocks is a good case in point. While many of these companies are really more construction plays than any particular play on water quality or water conservation, Wall Street nevertheless took them on a run that has recently cooled off in a big way.
Watts Water Technologies (WTS) is down about 15% since my last update on the company, underperforming the larger industrial sector, but still doing less-bad than other water theme names like Pentair (PNR) and Xylem (XYL) over that period. Although I still wouldn’t call Watts cheap today, this sector is worth watching as investors bail out on their one-time darlings and valuations get more reasonable.
Read the full article at Seeking Alpha:
As Water Stocks Come Off The Boil, Watts Water Technologies Looking More Reasonably Valued
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