Is WTTR a good stock to buy? We came across a bullish thesis on Select Water Solutions, Inc. on Valueinvestorsclub.com by ChannelsTX. In this article, we will summarize the bulls’ thesis on WTTR. Select Water Solutions, Inc.’s share was trading at $16.42 as of May 1st. WTTR’s trailing and forward P/E were 78.19 and 38.31 respectively according to Yahoo Finance.
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Select Water Solutions (WTTR) is positioned as the leading water management and recycling platform in the US oil and gas industry, benefiting from powerful secular tailwinds as shale production drives escalating water volumes and operators increasingly shift from disposal to recycling and ultimately beneficial reuse.
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The company’s Water Infrastructure segment, which already delivers higher margins and long-duration contracted cash flows, is expected to be the primary growth engine as recycling penetration rises toward 85–90% and emerging non-energy applications in municipal, agricultural, and industrial markets begin to materialize from 2026 onward.
Select Water Solutions transformed its business mix toward resilient production-linked revenues, reducing cyclicality and improving margins, with Water Infrastructure now representing an expanding share supported by strategic M&A and disciplined capital allocation after an equity raise.
Market underappreciates earnings power, consensus 2028 EPS of $0.65 closer to $1.00 as Water Infrastructure compounds at 25%+ driven by adoption, network expansion, and high-return reinvestment opportunities. Applying a 25x multiple to earnings implies a ~$25 valuation, supported by rerating from ~7x EBITDA toward ~10x as the business increasingly resembles a scaled water infrastructure utility rather than a cyclical oilfield services provider.
Upside is reinforced by a strong balance sheet at ~1.0x leverage, free cash flow generation, and a management team led by founder-CEO John Schmitz with deep industry credibility and alignment through equity ownership. Oil price exposure and key-man risk are considerations, but structural shift toward recycling and infrastructure-led growth underpins a compounding story with asymmetric upside as the water cycle becomes increasingly industrialized within energy production.
Previously, we covered a bullish thesis on Halliburton Company (HAL) by Buffet_fromTemu in October 2024, which highlighted drilling upside and geopolitical oil price tailwinds. HAL’s stock has appreciated by approximately 49.80% since our coverage. ChannelsTX shares similar view but emphasizes Select Water Solutions’ shift toward water infrastructure, recycling, and secular growth oilfield services, highlighting contracted revenues and beneficial reuse expansion.
Select Water Solutions, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held WTTR at the end of the fourth quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of WTTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WTTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
