Shares of Badger Meter, Inc. (NYSE:BMI) , the provider of flow measurement, control and communications solutions, have been performing well, of late. Shares of this Zacks Rank #1 (Strong Buy) stock have gained 21.8% year to date.
If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock as it looks promising and is poised to carry the momentum ahead.
What’s Working in Favor of Badger Meter?
Estimates on the Upswing
We note that earnings estimates for Badger Meter have displayed a healthy uptrend. For 2017, all the three estimates moved up over the last 30 days, with the Zacks Consensus Estimate rising roughly 4% to $1.26. The Zacks Consensus Estimate for 2018 also climbed 4.5% over the same time period to $1.40.
Positive 2H View
Badger Meter posted upbeat second-quarter 2017 results, with record earnings and revenues. The momentum is likely tocontinue in the second half of 2017, backed by the company’s sturdy market position and cost containment efforts. The company is well poised to benefit from robust fundamentals and growth strategies over the long term.
D-Flow Acquisition
Badger Meter acquired D-Flow Technology in the second quarter. D-Flow Technology specializes in the design and development of ultrasonic technology, primarily for use in flow measurement. This acquisition is anticipated to help Badger Meter enhance its successful E-Series Ultrasonic product line, bring down production costs and provide a platform for further advancement of ultrasonic capabilities.
Increase in Dividend
On Aug 12, Badger Meter raised its quarterly dividend by 13% to 13 cents per share, reflecting its strong balance-sheet position and effort to drive shareholders return. Thus, the new annual dividend rate is 52 cents per share.
Ahead of the Industry
The company has outperformed the industry in the past one year. Its shares have rallied 29.9%, while the industry recorded gain of 11.9%.
Stock is Undervalued
Badger Meter has a trailing 12-month price earnings (P/E) ratio of 38.42, while the industry’s average trailing 12-month P/E ratio is 18.81. As such, the stock seems undervalued.
Other Stocks to Consider
Other top-ranked stocks in the same sector are Applied Optoelectronics, Inc. (NASDAQ:AAOI) , Arista Networks, Inc. (NYSE:ANET) and AppFolio, Inc. (NASDAQ:APPF) . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Optoelectronics has expected long-term growth rate of 18.75%.
Arista Networks has expected long-term growth rate of 21.60%.
AppFolio has expected long-term growth rate of 30.00%.
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AppFolio, Inc. (APPF): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Badger Meter, Inc. (BMI): Free Stock Analysis Report
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Zacks Investment Research