Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Mueller Water Tapped Into Wall Street's Housing Hopes

Investors are clearly expecting improvements in the housing market to continue, and that enthusiasm is helping to push Mueller Water Products (NYSE:MWA) to a new 52-week high. I don't consider this altogether surprising, as I wrote about six months ago that Wall Street would likely stay on this name so long as the prospects for improved revenue growth and margin leverage remained tenable. While it is harder and harder to see long-term intrinsic value in the shares unless the housing recovery really surprises to the good, momentum and near-term profit growth prospects could take these shares into the low to mid teens.

Inconsistency Not Bothering The Street Yet

Mueller Water has been seeing some quarter-to-quarter noise in its...

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