Water technology remains an area of the market where you really don’t go looking for bargains, and this has been true for quite some time. What I find interesting, though, is that these stocks haven’t necessarily lived up to the hype – the growth has been fine, and there’s been margin improvement, but the sector hasn’t been that breakaway success you might have expected, and the returns haven’t been that exceptional over the last three or five years.
Turning to Watts Water Technologies (WTS), there are a lot of things I like about this company, including its credible and growing leverage to smart/connected devices. What I don’t like, not surprisingly, is the valuation. I do expect non-residential demand to improve in 2022, and I do see a window of opportunity for connected devices to drive margin improvement, but that seems well-reflected in the share price.
Click the link to continue reading:
Watts Water Technologies Looks Like An Expensive Way To Play Water Themes
No comments:
Post a Comment