Five Plays on Water


Tony Daltorio Image Tony Daltorio Editor, Investors Alley Premium Digest

With demand for clean water expected to surge by over 85% by 2035, you’re looking at a phenomenal investing opportunity. Here are five stocks that are critical to making sure you have clean drinking water. notes Tony Daltorio, editor of Investing Daily's Growth Stock Advisor.

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There a number ways to approach the global water problem and therefore a lot of investable companies in the sector. One approach is the improvement of water quality. There is an estimated two million metric tons of human waste sent into water sources daily, according to the World Water Assessment Program.

That is a vast opportunity for a company like the technology conglomerate Danaher (DHR), which is involved in water testing and water purification.

Then there is the infrastructure. A report from the World Bank said, “Some cities. . .lose more water through leaking pipes than they deliver to households.”

That is music to the ears of Mueller Water Products (MWA). The company offers a number of products related to water piping and infrastructure. Its water leak detection business, Echologics, provides actionable data for water utilities on underground water pipe leaks.

A company very well-positioned is the water technology firm Xylem (XYL), which was spun off from ITT Corporation in 2011.