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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 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. 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. 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 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 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.
5. United Rentals, Inc. (NYSE:URI)
Short Percentage of Shares Outstanding: 2.23%
United Rentals, Inc. (NYSE:URI) received a boost from analysts on June 3 when UBS raised its price target on the stock to $1,145 from $1,025 while maintaining a Buy rating. The firm cited encouraging industry data and branch manager surveys that continue to point toward healthy rental demand and positive momentum across construction and industrial markets.
Earlier, on May 11, Evercore ISI analyst David Raso increased his price target on United Rentals, Inc. to $1,101 from $1,019 and reiterated an Outperform rating. The upward revision reflects confidence in the company’s market leadership, pricing power, and ability to benefit from ongoing activity in construction, industrial maintenance, and infrastructure-related projects.
United Rentals is the largest equipment rental company in North America and is headquartered in Stamford, Connecticut. Founded in 1997, the company provides a wide range of rental equipment for construction, industrial, municipal, and residential customers. Its offerings include earthmoving equipment, aerial work platforms, power and HVAC systems, trench safety solutions, water management services, and specialty tools.
4. Mueller Water Products, Inc. (NYSE:MWA)
Short Percentage of Shares Outstanding: 2.12%
Mueller Water Products, Inc. (NYSE:MWA) continued to attract analyst attention on May 7 when Baird raised its price target on the stock to $34 from $33 while maintaining a Neutral rating. The firm updated its financial model following second-quarter results and indicated that the company’s performance remains largely in line with expectations.
The day before, Goldman Sachs increased its price target on Mueller Water Products, Inc. to $29 from $28 and maintained a Neutral rating. The firm highlighted record second-quarter results that exceeded expectations on both revenue and earnings, driven by favorable pricing actions and manufacturing efficiencies. Goldman Sachs also noted that margin expansion is expected to continue throughout the year as the benefits of recent pricing initiatives become more fully realized in the second half of 2026.
Mueller Water Products, Inc. is a leading manufacturer and marketer of water infrastructure products headquartered in Atlanta, Georgia, and was founded in 1857. The company’s portfolio includes fire hydrants, gate valves, pipe repair solutions, leak detection technologies, and smart water metering systems used throughout North America.
3. Valmont Industries, Inc. (NYSE:VMI)
Short Percentage of Shares Outstanding: 1.96%
Valmont Industries, Inc. (NYSE:VMI) received a strong endorsement from Wall Street on May 28 when Oppenheimer initiated coverage of the company with an Outperform rating and a $600 price target. The firm believes Valmont is well-positioned to capitalize on rising investment in utility transmission and distribution infrastructure, an area expected to benefit from grid modernization efforts and growing electricity demand.
Earlier, on April 22, Stifel raised its price target on Valmont Industries, Inc. to $541 from $497 while maintaining a Buy rating. The firm highlighted the company’s robust utility segment performance, which continues to offset softer conditions in the irrigation market. Stifel’s revised outlook reflects confidence that growth in utility infrastructure projects will remain a meaningful driver of earnings and revenue expansion, helping Valmont navigate cyclical challenges in certain end markets while maintaining solid operational momentum.
Valmont Industries, Inc. is a diversified industrial manufacturer headquartered in Omaha, Nebraska, and was founded in 1946. The company produces mechanized irrigation equipment, utility and lighting structures, telecommunication towers, solar tracking systems, and industrial protective coating solutions.
2. Stantec Inc. (NYSE:STN)
Short Percentage of Shares Outstanding: 1.40%
Stantec Inc. (NYSE:STN) strengthened its position in the water infrastructure market on June 3 when the Black & Veatch–Stantec joint venture secured an $85 million contract from the U.S. Army Corps of Engineers. The agreement will provide design and engineering support services for the Brandon Road Interbasin Project, a major initiative intended to prevent invasive carp populations from entering the Great Lakes. The eight-year contract involves modifications to the Brandon Road Lock and Dam and highlights Stantec’s expertise in delivering large-scale environmental and water-resource infrastructure projects.
Earlier, on May 19, CIBC analyst Krista Friesen lowered her price target on Stantec Inc. to C$160 from C$173 while maintaining an Outperformer rating. Although the target was reduced, the continued positive rating reflects confidence in the company’s long-term growth prospects and operational execution.
Stantec Inc. is a global professional services firm headquartered in Edmonton, Alberta, Canada, and was founded in 1954. The company provides engineering, architecture, environmental consulting, and design services across a wide range of sectors, including transportation, energy, buildings, and infrastructure. Stantec has developed a particularly strong presence in water infrastructure, supporting clients with planning, design, and program management solutions for drinking water, wastewater, flood control, and water-resource management projects around the world.
1. Southland Holdings, Inc. (NYSEAMERICAN:SLND)
Short Percentage of Shares Outstanding: 1.24%
Southland Holdings, Inc. (NYSEAMERICAN:SLND) reported first-quarter revenue of $172.4 million on May 12, slightly exceeding analyst estimates of $172.22 million. Management highlighted encouraging progress on the strategic plan introduced earlier this year, noting that a strengthened capital position has supported operational improvements across the business. President and Chief Executive Officer Frank Renda pointed to the Civil segment’s 14% gross margin as evidence of the company’s improving execution, while emphasizing continued focus on asset optimization, disciplined bidding practices, and the pursuit of higher-margin opportunities within its core infrastructure markets.
Earlier, on March 31, Craig-Hallum analyst Christian Schwab lowered his price target on Southland Holdings, Inc. to $3 from $8 while maintaining a Buy rating. The adjustment followed weaker-than-expected fourth-quarter results, which were impacted by a legal ruling related to the Washington State Convention Center project and reduced visibility into 2026 performance.
Southland Holdings, Inc. is an infrastructure construction company headquartered in Grapevine, Texas, with organizational roots dating back to 1900. Through subsidiaries such as Oscar Renda Contracting and Southland Contracting, the company specializes in complex civil engineering projects, including tunnels, bridges, marine structures, transportation systems, and water-resource infrastructure.
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