5 Overvalued Stocks to Watch

In this article, we discuss 5 overvalued stocks to watch. If you want to see more stocks in this selection, check out “More Pain”: Morgan Stanley Analyst’s Latest Prediction and 10 Overvalued Stocks to Watch. 

5. Badger Meter, Inc. (NYSE:BMI)

Number of Hedge Fund Holders: 18

P/E Ratio as of September 19: 43.57

Badger Meter, Inc. (NYSE:BMI) is a Wisconsin-based provider of flow measurement, quality, control, and communication solutions in the United States and internationally. As of September 19, Badger Meter, Inc. (NYSE:BMI)’s P/E ratio stands at 43.57, rendering it overvalued. Despite the company’s revenue and margin growth prospects, the valuation is not attractive, and many industry peers are trading at meaningful discounts. 

Northcoast analyst Ryan Connors on July 18 initiated coverage of Badger Meter, Inc. (NYSE:BMI) with a Neutral rating and no price target. The analyst favors companies operating in the agriculture, irrigation, and industrial sectors, where he noted the demand outlook “appears more promising” relative to construction and municipals. In addition, the analyst believes the regulated water utility space is positioned for “superior estimate revision trends” compared to industrials.

According to Insider Monkey’s data, 18 hedge funds were bullish on Badger Meter, Inc. (NYSE:BMI) at the end of Q2 2022, with collective stakes worth $143.5 million. Ian Simm’s Impax Asset Management is the leading stakeholder of the company, with 1.16 million shares valued at $94 million.