MUELLER WATER PRODUCTS (MWA) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Mueller Water Products (MWA) has shown strong stock performance, with a 45.1% increase since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Steel - Pipe and Tube industry [1][3]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.32 against a consensus estimate of $0.23 in its latest earnings report [2]. - For the current fiscal year, Mueller Water Products is projected to achieve earnings of $0.93 per share on revenues of $1.27 billion, reflecting a 47.62% increase in EPS despite a slight revenue decline of -0.27% [3]. - The next fiscal year forecasts an EPS of $1.06 and revenues of $1.35 billion, indicating year-over-year growth of 13.98% in EPS and 5.82% in revenues [3]. Valuation Metrics - The stock currently trades at a valuation of 22.5 times the current fiscal year EPS estimates, which is higher than the peer industry average of 16.2 times [7]. - On a trailing cash flow basis, the stock trades at 20.4 times, compared to the peer group's average of 10.6 times [7]. - The PEG ratio stands at 1.5, suggesting that the stock is not among the top tier from a value perspective [7]. Zacks Rank and Style Scores - Mueller Water Products holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8]. - The stock has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a combined VGM Score of B [6][9]. - The alignment of a Zacks Rank of 1 and Style Scores of A or B indicates potential for further stock price appreciation in the near term [9].