Investors have bailed out of many water stocks recently, but Evoqua (AQUA) has held up considerably better. As a company that is actually a good play on water quality (including water treatment and remediation), and not actually more of a play on construction, that makes sense. Even so, I’m not going to pretend that I expected the shares to be as strong as they’ve been – up almost 70% since my last article.
At this point, valuation remains challenging, but then I wouldn’t expect a company with above-average revenue growth and margin leverage potential to trade cheaply. Not only is Evoqua a good play on eventual PFAS cleanup spending, but the company is also well-leveraged to a wide range of growth markets and further growth in its outsource “water as a service” offerings.
Read the full article here:
Evoqua Shares Continuing To Bubble With Multiple Growth Drivers
No comments:
Post a Comment