You've Heard About the Water Crisis; Here's the Company Solving It

Everyone knows there's a water crisis...

On Day Zero (Aug. 27), residential water taps will be turned off in Cape Town, South Africa.

London, England, will have supply problems by 2025 and "serious shortages" by 2040, according to the Greater London authority.

Water Stocks

Water will be scarce in Istanbul, Turkey, by 2030, according to BBC.

None of this information is new or surprising.

It's almost common knowledge by this point that we're all headed toward a global water disaster.

But while governments have dropped the ball by allowing water infrastructures to deteriorate and offering no solutions on how to avoid water crises, private companies are stepping up.

This is where capitalism works best...

A company finds a problem, creates a solution, and whole communities and cities benefit.

And when the company is publicly traded, you can profit, too.

You see, we knew just how big of a problem the water shortage was going to be back in 2013.

That's when Money Morning Executive Editor Bill Patalon uncovered a huge profit opportunity.

When he first brought this company to our reader's attention in 2013, its stock price was trading for $34.53 per share.

It's now trading at $68.88 per share, a 99% gain in five years.

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That significantly outpacing the Dow Jones Industrial Average's 62.36% return during that same time. And that's just the beginning for this stock...

After all, the global water crisis has yet to peak, and this company will be at the center of solving it.

One analyst projects shares of this stock will climb 30.6% in just the next 12 months.

We created a full report about this company, which you can access right here.

A massive buy signal just flashed through our proprietary system for another water stock with even bigger gains ahead. I had to make sure Money Morning readers saw it today.

In the next 12 months, analysts at financial service firm Janney Montgomery Scott expect the stock price of this company to climb 63% in just 12 months.

And the potential gains could be even larger than that once the true extent of the crisis becomes known.

It's no wonder this stock just earned a perfect Money Morning Stock VQScore™ and is a screaming buy...

This Water Stock Could Provide Double-Digit Returns

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The water stock that just popped up as a "Buy" through our proprietary valuation system is Mueller Water Products Inc. (NYSE: MWA).

With a 4.75 VQScore, it's priced to make you money.

The Atlanta-based company provides the products and infrastructure needed to monitor water networks, detect pipeline leaks, and assess the state of a water infrastructure system to combat drought.

Video

Mueller Smart Meters Used to Improve Water Infrastructure

And because of Muller's expertise, two of its largest customers are the state of Florida and the state of California, according to FactSet.

That's right.

Two out of the five biggest states in the United States are customers of Mueller Water Products.

From 2011 to 2014, California experienced its driest period in history since record-keeping began, according to the Public Policy Institute of California. In 2015, the draught forced the state to issue mandatory 25% water restrictions.

Florida also has had issues, with 66% of the state in a drought in May 2017.

During restrictions and draughts, municipalities need to increase operational efficiency and prioritize how they spend their money. The water that can be used needs to reach the areas and the people who desperately need it.

Municipalities can't afford to have the precious resource lost to leaks or improperly flowing due to old infrastructure.

That's where Mueller's expertise comes in.

"Using rock solid materials and ground-breaking technology, our products and services are designed and engineered for the long run. That means lasting value for the communities and contractors who choose solutions offered by the Mueller Water Products group of companies," Mueller said on its website.

And the best businesses in the water industry will make the most gains as the world tries to avoid water crises. Financial firm Janney Montgomery Scott is very bullish on MWA stock.

In the next 12 months, it expects the MWA stock price to climb to $16 per share. From yesterday's (May 2) closing price of $9.80, that's a 63.26% increase.

On top of that, MWA also pays its shareholders a generous dividend of $0.20 (2.01% yield). That ensures you'll profit from owning this stock and compounds your returns.

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