5 Best Water Stocks To Buy

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

5. Primo Water Corporation (NYSE:PRMW)

Number of Hedge Fund Holders: 23

Primo Water Corporation (NYSE:PRMW) specializes in providing water solutions for both residential and commercial customers. The company’s offerings include bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring and mineral water, sparkling and flavored water, filtration equipment, and coffee. It is one of the top water stocks to invest in. 

On November 2, Primo Water Corporation (NYSE:PRMW) announced that it plans to divest a substantial portion of its global operations to Culligan in an all-cash deal worth up to $575 million. The transaction excludes the Aimia Foods, United Kingdom, Portugal, and Israel businesses, with plans for each of these entities to be sold throughout 2024.

According to Insider Monkey’s third quarter database, 23 hedge funds were bullish on Primo Water Corporation (NYSE:PRMW), compared to 24 funds in the preceding quarter. Seth Rosen’s Nitorum Capital is the biggest stakeholder of the company, with 2.9 million shares worth nearly $40 million.  

Heartland Small Cap Value Strategy made the following comment about Primo Water Corporation (NYSE:PRMW) in its Q4 2022 investor letter:

“A new addition to the portfolio last quarter was Primo Water Corporation (NYSE:PRMW), one of the largest providers of multi-gallon bottled drinking water for consumers and businesses in North America and Europe. While water isn’t necessarily considered economically sensitive, investors have underappreciated the stock partially due to fears that the downturn could hurt sales since the alternative—tap water—is free.

PRMW’s business model, which includes direct delivery, refills, exchanges, and the sale of in-home dispensers, should prove recession resistant and durable. The company benefits from concerns over the quality of tap water, given the aging municipal infrastructure and the phasing out of single-use plastic bottles. We felt comfortable initiating a position after the company raised its revenue and earnings guidance and the CEO aggressively purchased shares. Plus, the stock trades at just 8.7X EV/EBITDA, a significant discount to its peer group and true worth.”