Five notable water stocks are making headlines on December 6, 2023, as investors turn their attention to companies involved in water supply, treatment, and distribution. According to MarketBeat’s stock screener tool, the leading stocks to watch include Coca-Cola, NuScale Power, Ecolab, IDEXX Laboratories, and American Water Works.
Water stocks represent shares in companies that manage a critical resource—water. These companies range from utilities providing potable water to firms constructing and maintaining pipelines and treatment plants. They also include manufacturers of pumps, filtration systems, and monitoring technologies. Investors often view these stocks as defensive or long-term investments, closely tied to trends in population growth, urbanization, and increasing regulatory and climate-driven demand for effective water management. While these factors typically bolster their market performance, stock values can fluctuate due to local regulations, capital intensity, and water rights issues.
Coca-Cola’s Diverse Beverage Portfolio
Coca-Cola Company, known globally for its beverage offerings, produces a wide array of non-alcoholic drinks. This includes sparkling soft drinks, various flavored waters, sports and energy drinks, coffee, tea, juices, and plant-based beverages. Additionally, the company manufactures beverage concentrates and syrups, supplying them to retailers such as restaurants and convenience stores.
NuScale Power’s Innovative Energy Solutions
NuScale Power Corporation focuses on the development and sale of modular light water reactor nuclear power plants. These plants are designed to provide energy for electrical generation, district heating, desalination, hydrogen production, and other heat applications. Their flagship product, the NuScale Power Module (NPM), can generate up to 77 megawatts of electricity (MWe). The company also offers VOYGR power plant designs that can accommodate one to twelve NPMs, catering to various energy needs.
Ecolab’s Comprehensive Water Solutions
Ecolab Inc. specializes in water, hygiene, and infection prevention solutions, operating both in the United States and internationally. The company is structured into three segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences. The Global Industrial segment provides water treatment and process applications, along with cleaning and sanitizing solutions for multiple industries, including food and beverage processing, power generation, and chemical manufacturing.
IDEXX Laboratories’ Diverse Product Range
IDEXX Laboratories, Inc. develops and distributes products primarily for veterinary services, livestock, poultry, dairy, and water testing markets. The company operates through three segments: Companion Animal Group, Water Quality Products, and Livestock, Poultry, and Dairy. With a global presence, IDEXX serves markets in Africa, Asia Pacific, Canada, Europe, Latin America, and beyond.
American Water Works’ Extensive Service Network
American Water Works Company, Inc. provides water and wastewater services across the United States. Through its subsidiaries, the company serves approximately 3.5 million active customers in around 1,700 communities across 14 states. Its customer base is diverse, including residential and commercial clients, industrial customers, public authorities, and other utilities.
As these companies continue to navigate the complexities of water management and distribution, they remain pivotal in the landscape of water stocks. Investors are closely watching these firms for potential long-term benefits tied to increasing demand for effective water solutions in a changing climate.
