Friday, March 25, 2022

Gorman-Rupp A More Off-The-Radar Play On Water

Pump manufacturer Gorman-Rupp (NYSE:GRC) didn't see quite the same level of excitement when institutional investors piled into water-related stocks, and the shares have held up comparatively better as that sector has cooled. Basically flat now from my last update (but up as much as a third in the interim), the valuation is still in that "okay but not great" gray zone where it's harder to make a definitive call either way.

There's plenty to like about Gorman-Rupp, and not just its exposure to water infrastructure spending. The company is also leveraged to a coming recovery in new commercial construction, as well as infrastructure, and further growing in process-oriented industry. That said, the margins aren't really exceptional and I do think that limits some of the upside.

 

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Gorman-Rupp A More Off-The-Radar Play On Water

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