Top Five Water Stocks to Watch This November

According to MarketBeat’s stock screener tool, five water-related stocks are attracting significant investor attention as of November 29, 2023. The highlighted companies—Coca-Cola, NuScale Power, Xylem, Ecolab, and IDEXX Laboratories—are recognized for their roles in the vital water sector, which encompasses supplying, treating, and managing water resources.

Water stocks are often perceived as safe long-term investments due to their connection to essential needs like population growth, urbanization, and increasing water scarcity. Despite their defensive characteristics, these companies face regulatory challenges, capital expenditure demands, and regional market fluctuations. Recently, they have recorded some of the highest dollar trading volumes among water stocks.

Coca-Cola: Beyond Beverages

The Coca-Cola Company (KO) is primarily known for its wide array of nonalcoholic beverages, including sparkling soft drinks and bottled water. The company also produces beverage concentrates and syrups, which are distributed to retailers such as restaurants and convenience stores. Coca-Cola’s diverse product line positions it well in the market, particularly as consumer awareness grows around sustainable water usage.

NuScale Power: Energy Innovation

NuScale Power Corporation (SMR) specializes in developing modular light water reactor nuclear power plants. These facilities are designed to provide energy for electrical generation, district heating, and even desalination. The company offers the NuScale Power Module (NPM), which generates 77 megawatts of electricity. Their innovative designs cater to various facility sizes, accommodating one to twelve NPMs, which could significantly impact energy production and water treatment processes.

Xylem: Engineering Solutions

Operating globally, Xylem Inc. (XYL) focuses on engineered products and solutions for water management. The company is structured into four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. Their Water Infrastructure segment provides essential products like pumps and disinfection equipment, making Xylem a key player in addressing water challenges.

Ecolab: Comprehensive Water Management

Ecolab Inc. (ECL) offers comprehensive solutions for water treatment and hygiene across various industries, including manufacturing and food processing. Their Global Industrial segment provides key cleaning and sanitizing solutions, essential for maintaining water quality in sectors such as power generation and petrochemicals. Ecolab’s services are crucial in promoting efficient water use and management.

IDEXX Laboratories: Testing for Quality

IDEXX Laboratories, Inc. (IDXX) develops products for veterinary, livestock, and water quality testing. The company operates through three main segments: Companion Animal Group, Water Quality Products, and Livestock, Poultry and Dairy. IDEXX’s focus on water quality testing ensures that safe water standards are met, which is vital for public health and environmental sustainability.

Investors are closely monitoring these five companies as they navigate the complexities of the water sector. With global challenges relating to water scarcity and quality on the rise, companies engaged in water management and related technologies may present attractive opportunities for long-term investment.