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What Makes Mueller Water Products (MWA) a Prospective Investment?

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned 11.4% compared to a 5.2% return for the Russell 2000 Index and a 6.9% return for the Russell 2500 Index. All sectors except communication services and energy posted positive relative performance. Sector allocation was also additive, even though stock selection was primarily responsible for the fund’s outperformance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Madison Small Cap Fund featured stocks like Mueller Water Products, Inc. (NYSE:MWA) in the first quarter 2024 investor letter. Headquartered in Atlanta, Georgia, Mueller Water Products, Inc. (NYSE:MWA) is an infrastructure company that produces and markets products and services for the transmission, distribution, and measurement of water. On April 17, 2024, Mueller Water Products, Inc. (NYSE:MWA) stock closed at $15.34 per share. One-month return of Mueller Water Products, Inc. (NYSE:MWA) was -4.36%, and its shares gained 13.46% of their value over the last 52 weeks. Mueller Water Products, Inc. (NYSE:MWA) has a market capitalization of $2.396 billion.

Madison Small Cap Fund stated the following regarding Mueller Water Products, Inc. (NYSE:MWA) in its first quarter 2024 investor letter:

“During the quarter, we sold two stocks (Alteryx and PTC) and initiated two new investment positions (HashiCorp and Mueller Water Products, Inc. (NYSE:MWA)). Mueller Water Products (MWA) manufactures products and services used in the transmission, distribution, and measurement of water in North America. They help utilities deliver clean, safe drinking water. The company’s domain strength is after the water leaves treatment and before the home, or the vast network of pipes and valves between the utility and the point of use, things like fire hydrants, brass works, and large valves. It’s largely a replacement market with 40% exposure to residential and the rest utilities. Very few companies with scale compete directly with MWA. The company has significant share positions in hydrants and big gate valves. Their customer base is quite sticky, and the company has recently completed an investment cycle building a new foundry. America’s water infrastructure is massive and in very serious need for upgrade and modernization. Significant federal funds have been allocated to do just this and we believe MWA is well positioned to capitalize. We estimate a reasonable PMV for MWA is approximately $25.”

A plumber crouched in a crawlspace, working on a pipe repair project for residential construction.

Mueller Water Products, Inc. (NYSE:MWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Mueller Water Products, Inc. (NYSE:MWA) was held by 13 hedge fund portfolios, compared to 11 in the previous quarter, according to our database.

We previously discussed Mueller Water Products, Inc. (NYSE:MWA) in another article, where we shared the list of best dividend stocks under $20. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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