No one can say for sure which way the market will go. One thing is sure though; people will need and will pay for clean water. Pentair is one of the companies that sells equipment to clean and transport water, and it's reported positive, often double-digit profit and sales growth this past year. On Thursday, the Relative Strength (RS) Rating for Pentair stock ratcheted up to 71 from 66.
Pentair Stock Among Top 13% Overall
The U.K.-based company sells water pumps and filtration systems for agriculture, industrial and home uses such as for pools and spas. It boasts a 90 EPS Rating, putting it in the top 10% of companies for recent and long-term earnings growth. It also carries an 87 Composite Rating, an amalgam of IBD's top five other ratings. And its B+ Accumulation/Distribution Rating points to strong buying by insurance funds, mutual funds and the like.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. The stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest climbs. See if Pentair can continue to show renewed price strength and clear that threshold.
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Despite its strong fundamentals and market position, Pentair stock followed the bear market down most of this past year. However, it started rallying in late October after hitting an intraday low 38.55. It closed Thursday at 48.03, down about 4.4% on a down day for the market. Pentair stock is not currently offering a proper buying opportunity. See if the stock goes on to build a base that could launch a new move.
At the end of July Pentair bought Manitowoc Ice from Welbilt for $1.6 billion, expanding its presence in the water market.
In Billion-Dollar Club
Pentair reported 11% EPS growth last quarter to 99 cents per share. Sales increased 9% to $1.06 billion. Keep an eye out for the company's next round of numbers on or around Jan. 31.
Pentair stock earns the No. 15 rank among its peers in the Machinery-General Industrial industry group. SPX Technologies and Trane Technologies are among the group's highest-rated stocks.
IBD's exclusive Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
