In this article, we will discuss the 7 Best Water Infrastructure Stocks to Buy for Scarcity Trends.
The next great resource crisis may not be about oil, lithium, or rare earth metals; it may be about water.
As climate change, population growth, aging infrastructure, and industrial demand place increasing pressure on global freshwater supplies, water infrastructure is emerging as one of the most compelling long-term investment themes on Wall Street. From pipelines and treatment facilities to desalination plants, smart metering systems, and leak-detection technologies, the companies responsible for delivering clean water are becoming essential players in a world facing mounting scarcity challenges.
Some of the world’s most successful investors have long recognized the strategic importance of water-related assets. Legendary hedge fund manager Michael Burry famously warned years ago that water scarcity could become one of the defining investment themes of the 21st century. Meanwhile, billionaire investor Ray Dalio has repeatedly emphasized the importance of owning critical infrastructure and real assets that remain indispensable regardless of economic conditions.
Moreover, according to the United Nations, approximately 2.2 billion people currently lack access to safely managed drinking water, while global water demand is projected to rise by as much as 30% by 2050. Meanwhile, the World Bank estimates that hundreds of billions of dollars in annual investment will be required to modernize aging water systems and expand access worldwide. Industry research also projects that the global smart water management market could grow at a double-digit annual rate throughout the coming decade as utilities invest in efficiency, monitoring, and conservation technologies.
For investors searching for a secular growth story backed by necessity rather than consumer preference, water infrastructure stocks offer exposure to one of the world’s most essential, and increasingly scarce, resources.
With this context in mind, here are some of the best water infrastructure stocks to buy for scarcity trends.
Our Methodology
We used stock screeners to identify a list of stocks that are related to water infrastructure. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7 Best Water Infrastructure Stocks to Buy for Scarcity Trends
7. SPX Technologies, Inc. (NYSE:SPXC)
Short Percentage of Shares Outstanding: 3.57%
SPX Technologies, Inc. (NYSE:SPXC) earned support from Wall Street on May 6 when JPMorgan raised its price target on the stock to $270 from $260 while maintaining an Overweight rating. The increase reflects confidence in the company’s growth trajectory and its ability to continue generating strong operating performance across its portfolio of industrial and infrastructure-focused businesses.
On May 4, Truist analyst Jamie Cook raised the firm’s price target on SPX Technologies, Inc. (NYSE:SPXC) to $261 from $251 and reiterated a Buy rating following the company’s first-quarter results. The analyst highlighted an earnings beat and noted that organic growth contributed 7.4 percentage points to the company’s impressive 17% increase in sales. The results demonstrated healthy demand across key end markets and underscored management’s ability to convert growth opportunities into stronger financial performance.
SPX Technologies, Inc. (NYSE:SPXC) is a diversified industrial company headquartered in Charlotte, North Carolina, and traces its roots to 1912. Its offerings support water and wastewater systems, utility networks, cooling technologies, and inspection solutions that help customers improve efficiency and reliability.
6. Tutor Perini Corporation (NYSE:TPC)
Short Percentage of Shares Outstanding: 3.42%
Tutor Perini Corporation (NYSE:TPC) strengthened its project pipeline on May 27 when its subsidiary, Perini Management Services, secured an approximately $81.8 million contract from the U.S. Coast Guard. The award covers the design and construction of family housing units and a major water storage tank replacement project at USCG Base Kodiak in Alaska. Work is expected to begin immediately, with substantial completion targeted for late 2028. The contract will be added to Tutor Perini’s backlog during the second quarter, further enhancing the company’s already substantial portfolio of infrastructure and government projects.
Earlier, on May 6, Tutor Perini Corporation (NYSE:TPC) reported first-quarter adjusted earnings per share of $1.03, exceeding analyst expectations of $0.96. Revenue totaled $1.4 billion, slightly below consensus estimates, but management reaffirmed its full-year 2026 adjusted EPS guidance range of $4.90 to $5.30. The company emphasized its confidence in the business outlook, noting that current guidance includes contingency allowances for unforeseen developments while reflecting expectations for continued strong project execution throughout the year.
Tutor Perini Corporation (NYSE:TPC) is a leading construction company headquartered in Sylmar, California, and was founded in 1894. The company specializes in large-scale civil, building, and infrastructure projects, including bridges, highways, transit systems, tunnels, airports, military facilities, and water resource developments.
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