10 Best Water Recycling Stocks to Buy

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3. Pentair plc (NYSE:PNR)

Number of Hedge Fund Holders: 43

Pentair plc (NYSE:PNR) provides filtration, water-treatment, and pumping systems for residential, commercial, and industrial customers. Its commercial water business is providing growth while housing weakness and pool inventory adjustments weigh on the wider company.

In Q3 2026, Water Solutions sales increased 1% to $422 million. Commercial sales grew 4%, offsetting weaker residential demand. Management sees further opportunities with large accounts and convenience stores, where expanding customer relationships could support growth despite the slow housing market.

The distinction matters because companywide core sales declined 5%, largely reflecting an 18% drop in Pool. Flow and Water Solutions still increased sales and segment income, suggesting the operating performance outside Pool remains healthier than the consolidated revenue decline implies.

The Taco acquisition adds water-circulation and hydronic flow-control capabilities, expanding Pentair plc (NYSE:PNR)’s exposure to hospitals, schools, commercial buildings, and data centers. Management expects Taco’s EBITDA to exceed $105 million in 2027, estimating its full-year EBITDA at $90 million in 2026 and more than $105 million in 2027.

Goldman Sachs supported this improving outlook on October 28, raising its target on Pentair plc (NYSE:PNR) to $66 while retaining Neutral. It highlighted completed pool destocking and Taco’s stronger performance.

The valuation case still requires an earnings recovery. Our October coverage examines whether Pentair’s lower earnings multiple and dividend support adequately compensate for that uncertainty.

With residential demand constrained by mortgage rates and affordability, commercial growth and acquisition execution will need to carry more of the recovery.

2. Veralto Corporation (NYSE:VLTO)

Number of Hedge Fund Holders: 46

Veralto Corporation (NYSE:VLTO) supplies water-testing instruments, treatment chemicals, and disinfection technologies that help utilities and industrial customers maintain water quality. Its exposure to everyday treatment operations supports demand even when customers postpone major infrastructure projects.

Approximately 60% of Water Quality revenue is recurring, while industrial applications account for half the segment’s sales. Chemicals, servicing, and replacement equipment keep existing facilities running, giving Veralto Corporation a broad revenue base across municipal and industrial customers.

Recent results support that resilience. Hach’s North American municipal sales grew at a high-single-digit rate in Q3 2026. RBC highlighted that performance on November 2 as evidence against concerns over municipal budget pressure, raising its target on Veralto Corporation to $121 while maintaining Sector Perform.

Acquisitions are expanding the treatment offering. Cleanwater1 adds disinfection, odor-control, and solids-management technologies alongside an installed base of approximately 25,000 pieces of equipment. Its products could complement Trojan’s ultraviolet treatment systems and create opportunities to sell additional solutions to existing customers.

The financial contribution needs time to develop. Management expects Cleanwater1 to dilute near-term margins, even as cost savings support earnings. That makes our earlier coverage of why Brown Advisory questioned Veralto’s dependence on acquisitions for faster growth relevant to the current investment case.

Veralto Corporation raised full-year adjusted EPS guidance to $4.49–$4.52, implying 15%–16% growth. Sustaining that progress will require continued strength in recurring treatment sales and successful integration of its expanding technology portfolio.

1. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 62

Ecolab Inc. (NYSE:ECL) helps industrial customers treat and reuse water through chemicals, monitoring systems, and on-site services. Its appeal is that reducing water consumption can also lower customers’ operating costs and improve production, giving them a financial reason to adopt its solutions.

That opportunity is expanding in semiconductor manufacturing. Management says combining Ovivo’s ultrapure-water systems with Ecolab’s recycling capabilities can enable fabs to reuse more than 80% of their water. Cleaner process water can also improve chip yields, making treatment performance increasingly valuable as manufacturing becomes more demanding.

Global High-Tech organic sales grew 63% in Q3 2026, supported by semiconductor water applications and data-center cooling. Acquired businesses added further momentum, with CoolIT more than doubling sales and Ovivo delivering double-digit growth against pre-acquisition levels.

Growth elsewhere strengthens the case. Light Water accelerated to 5%, while Food & Beverage grew 8% as customers adopted combined hygiene and water-management programs. These businesses give Ecolab Inc. opportunities beyond AI infrastructure.

Pricing is helping protect profitability. Citi raised its target on Ecolab Inc. to $345 from $330 on October 28 and maintained Buy, noting that price increases were running ahead of costs.

Investors still need to weigh those advantages against expectations. Our October analysis explores whether Ecolab’s customer retention and expanding water business justify its premium valuation.

Management cautioned against extrapolating the latest High-Tech growth rate. Sustained returns will depend on integrating acquisitions and maintaining pricing as Ecolab Inc. invests to meet demand.

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