What Happened?
Shares of water control and measure company Badger Meter (NYSE: BMI) jumped 2.5% in the afternoon session after analysts at Deutsche Bank highlighted the company as being well-positioned for 2026.
The commentary came as part of a broader note on water technology stocks, which the bank noted had underperformed the wider market in 2025. According to the bank's analysts, this created an attractive entry point for investors. They viewed the sector as a "chicken cyclical" play, meaning it offered both the chance for a recovery and advantages from long-term growth. Specifically regarding Badger Meter, the bank stated that despite the stock lagging in the previous year, the company remained in a good position moving forward.
After the initial pop the shares cooled down to $174.31, up 2.8% from previous close.
Is now the time to buy Badger Meter? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Badger Meter’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 14.2% on the news that the company reported second-quarter earnings that fell short of Wall Street expectations.
Badger Meter announced second-quarter earnings per share (EPS) of $1.17, which missed the average analyst estimate of $1.21 per share. While total sales for the quarter rose 10% year-over-year to $238.1 million, beating forecasts, the earnings miss appeared to weigh on investor sentiment., The company noted that while utility water sales increased by 11%, driven by demand for its smart water solutions and the recent SmartCover acquisition, sales of its flow instrumentation products were flat compared to the prior year. Additionally, operating profit margins saw a slight decrease from 19.2% to 18.8% year-over-year, and the company's tax rate increased.
Badger Meter is down 1.2% since the beginning of the year, and at $174.31 per share, it is trading 31.4% below its 52-week high of $254.17 from June 2025. Investors who bought $1,000 worth of Badger Meter’s shares 5 years ago would now be looking at an investment worth $1,722.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
