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11 Best Water Stocks To Buy

In this article, we discuss 11 best water stocks to buy. If you want to skip our discussion on the water industry, head directly to 5 Best Water Stocks To Buy

2023 has been riddled by volatility due to political, economic, and environmental factors that have had a cascading effect on the water sector, impacting M&A activities and deal flow. Concerns about a potential recession, the ongoing crisis in Ukraine, and record-breaking global temperatures have all impacted water assets. Despite these challenges, the underlying fundamentals of the water industry continue to attract a diverse range of investors, including private equity funds and well-established industrial manufacturing companies. While the cost of capital has increased, there is an influx of infrastructure funding from the U.S. and EU into municipal markets, as per a report by Bluefield Research. The competition for deal origination is intensifying, and there is a constant need to adapt portfolios for growth in this dynamic environment.

Due to climate change, a growing global population, and technological advancements, water management is evolving swiftly. According to WaterColor Management Insurance & Risk Management, the water treatment industry is witnessing significant trends that will reshape its landscape in 2024. Firstly, the adoption of digitalization is revolutionizing water management, ensuring improved quality and quantity control with the support of technologies like 5G, blockchain, and cloud solutions. Secondly, wastewater processing is evolving through advanced oxidation processes, adsorption/biosorption, and biological remedies to reduce pollutants. Advanced filtration, driven by nanotechnology, is allowing the development of membranes that efficiently remove micropollutants, while biological filtration is gaining recognition as well. Moreover, flood prevention is advancing with improved designs, monitoring, forecasting, and catastrophe modeling. Water-saving technologies, including water reuse, recycling, and intelligent irrigation, are gaining momentum. Decentralized infrastructure is becoming popular for enhancing community resilience, with modular and mobile treatment systems providing alternatives to centralized systems. Furthermore, material science is contributing innovative materials to enhance water management efficiency. Lastly, desalination is evolving with a focus on cost reduction and environmental impact mitigation, utilizing renewable energy and biomimicry for salt extraction from seawater.

Deloitte observed that electric power companies are increasingly recognizing and disclosing water risk in their financial reports, highlighting potential challenges such as reduced generation and negative business impacts due to factors like inadequate precipitation, drought, and regulatory actions limiting water supplies. The rising water stress has led to increased water costs, particularly evident in nuclear power plants where average water and coolant expenses rose from US$138 to US$140 per megawatt between 2021 and 2022. Thermal power plants, relying on water for cooling, face efficiency issues and environmental regulations restricting water discharge. Western hydroelectric plants may be at risk of shutdown due to low water levels, but overall, the US power production has become less water-intensive over the years. The growth of wind and solar photovoltaic generation is expected to contribute to this trend as they don’t rely on cooling water. However, the emerging trend of using electrolysis for green hydrogen production could potentially raise water consumption. To address water sustainability, power plants are exploring alternatives such as using brackish water, greywater, or recycled water for cooling instead of freshwater.

Some of the best water stocks to buy according to hedge funds include Ecolab Inc. (NYSE:ECL), Xylem Inc. (NYSE:XYL), and American Water Works Company, Inc. (NYSE:AWK). 

Our Methodology 

We chose the top water stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the third quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. 

A vast hydroelectric generation plant with a powerful waterfall cascading downwards.

Best Water Stocks To Buy

11. Global Water Resources, Inc. (NASDAQ:GWRS)

Number of Hedge Fund Holders: 5

Global Water Resources, Inc. (NASDAQ:GWRS) specializes in the management of water resources. It owns, runs, and oversees controlled water, wastewater, and recycled water systems, mainly in the metropolitan areas of Phoenix and Tucson, Arizona. On November 9, Global Water Resources, Inc. (NASDAQ:GWRS) reported a Q3 GAAP EPS of $0.11 and a revenue of $14.5 million, outperforming Wall Street estimates by $0.03 and $1.2 million, respectively. Additionally, on November 30, the company declared a $0.0251 per share monthly dividend, a 1.2% increase from its prior dividend of $0.0248. The dividend is payable on December 28, to shareholders of record on December 14. 

According to Insider Monkey’s third quarter database, 5 hedge funds were bullish on Global Water Resources, Inc. (NASDAQ:GWRS), same as the prior quarter. Chuck Royce’s Royce & Associates is the leading position holder in the company. 

In addition to Ecolab Inc. (NYSE:ECL), Xylem Inc. (NYSE:XYL), and American Water Works Company, Inc. (NYSE:AWK), Global Water Resources, Inc. (NASDAQ:GWRS) is one of the best water stocks to monitor. 

10. Middlesex Water Company (NASDAQ:MSEX)

Number of Hedge Fund Holders: 6

Middlesex Water Company (NASDAQ:MSEX), established in 1896 and headquartered in New Jersey, owns and operates regulated water utility and wastewater systems. The company operates in two segments – Regulated and Non-Regulated. It is one of the best water stocks to buy. 

On October 20, Middlesex Water Company (NASDAQ:MSEX) declared a $0.325 per share quarterly dividend, a 4% increase from its prior dividend of $0.313. The dividend was paid on December 1, to shareholders of record as of November 16. 

According to Insider Monkey’s third quarter database, 6 hedge funds were long Middlesex Water Company (NASDAQ:MSEX), compared to 7 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading stakeholders of the company, with a position worth $649,250. 

9. California Water Service Group (NYSE:CWT)

Number of Hedge Fund Holders: 8

California Water Service Group (NYSE:CWT) offers water utility and related services across California, Washington, New Mexico, Hawaii, and Texas. The company engages in different aspects of water management, including production, procurement, storage, treatment, testing, distribution, and the sale of water for domestic, industrial, public, irrigation, and fire protection purposes. It is one of the top water stocks to invest in. 

On October 25, California Water Service Group (NYSE:CWT) declared a quarterly dividend of $0.26 per share, in line with previous. The dividend was distributed to shareholders on November 17. 

According to Insider Monkey’s third quarter database, 8 hedge funds were bullish on California Water Service Group (NYSE:CWT), compared to 14 funds in the earlier quarter. Ian Simm’s Impax Asset Management is the leading stakeholder of the company, with 1.5 million shares worth $74.3 million. 

8. Consolidated Water Co. Ltd. (NASDAQ:CWCO)

Number of Hedge Fund Holders: 8

Consolidated Water Co. Ltd. (NASDAQ:CWCO) is engaged in designing, constructing, managing, and operating water production and treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company utilizes reverse osmosis technology to convert seawater into potable water. Consolidated Water Co. Ltd. (NASDAQ:CWCO) supplies water to residential, commercial, and government customers, and offers different water-related products and services, including desalination equipment, membrane separation equipment, filtration equipment, and engineering services for water production and treatment projects. It is one of the best water stocks to watch. 

On November 28, Consolidated Water Co. Ltd. (NASDAQ:CWCO) declared a $0.095 per share quarterly dividend, in line with previous. The dividend is payable on January 31, 2024 to shareholders of record on January 2. 

According to Insider Monkey’s third quarter database, 8 hedge funds were bullish on Consolidated Water Co. Ltd. (NASDAQ:CWCO), compared to 6 funds in the prior quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with 94,443 shares worth $2.68 million. 

7. The York Water Company (NASDAQ:YORW)

Number of Hedge Fund Holders: 11

The York Water Company (NASDAQ:YORW) is involved in impounding, purifying, and distributing drinking water. It manages wastewater collection and treatment systems. Established in 1816, the company is headquartered in York, Pennsylvania. The York Water Company (NASDAQ:YORW) is one of the best water stocks to buy.

On November 3, the company reported a Q3 GAAP EPS of $0.53 and a revenue of $18.77 million, outperforming Wall Street estimates by $0.17 and $1.77 million, respectively. Revenue for the period increased 18.7% on a year-over-year basis. 

According to Insider Monkey’s third quarter database, 11 hedge funds were bullish on The York Water Company (NASDAQ:YORW), same as the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the biggest stakeholder of the company, with 764,955 shares worth $28.6 million. 

6. SJW Group (NYSE:SJW)

Number of Hedge Fund Holders: 12

SJW Group (NYSE:SJW) offers water utility services in the United States, operating in two segments – Water Utility Services and Real Estate Services. The company is involved in different aspects of water services, including production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services. 

On October 30, SJW Group (NYSE:SJW) announced a Q3 GAAP EPS of $1.13 and a revenue of $204.8 million, topping Wall Street estimates by $0.18 and $17.8 million, respectively. The company also paid a $0.38 per share quarterly dividend on December 1. 

According to Insider Monkey’s third quarter database, 12 hedge funds were bullish on SJW Group (NYSE:SJW), compared to 9 funds in the prior quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 56,228 shares worth $3.3 million. 

Like Ecolab Inc. (NYSE:ECL), Xylem Inc. (NYSE:XYL), and American Water Works Company, Inc. (NYSE:AWK), SJW Group (NYSE:SJW) is one of the best water stocks to invest in. 

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Disclosure: None. 11 Best Water Stocks To Buy is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

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As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

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By investing in AI, you’re essentially backing the future.

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