As global water scarcity becomes a growing concern, innovative companies are stepping up with solutions that not only address the crisis but also create significant investment opportunities.
Why Water Scarcity Is a Real and Investable Issue:
- Over 2 billion people live in water-stressed regions today.
- By 2030, global water demand is projected to exceed supply by 40%.
- Major regions like California, parts of India, and the Middle East are already experiencing chronic shortages.
- Agriculture, industry, and cities are all competing for limited water supplies.
- Climate change, pollution, and poor infrastructure are making it worse.
That means that companies providing desalination, leak detection, irrigation tech, water reuse, filtration, and infrastructure upgrades are expected to see growing demand over the next decade.
Here are some of the best water-focused stocks to watch in 2025. These companies offer growth potential and the stability to thrive through shifting economic trends.
Find the best stocks with growth potential to buy today on TIKR >>>
Here are some of our top stock picks from this list:
Xylem (XYL)
- Market Cap: $26.7 billion
- Industry: Machinery
- Analyst Upside: 31%
- P/E Ratio: 23
Company Overview: Xylem is a global leader in water technology solutions, and offers a wide range of solutions for water transport, treatment, and testing, with notable brands like Flygt and YSI.
Business Strategy: Xylem makes money through its water infrastructure services, including water and wastewater treatment, along with smart water management technologies. Today, the business is focused on increasing digitalization, expanding in international markets, and optimizing water efficiency to meet growing global water demands.
Recent Developments:
- Earnings & Profitability: Xylem has reported strong earnings growth, driven by improved operational efficiency and successful integration of recent acquisitions.
- Business Growth Trends: The company continues to experience steady growth across its core segments, supported by resilient demand in water infrastructure and smart metering solutions, as well as ongoing digital transformation initiatives.
- Shareholder Returns: Xylem continues to increase its quarterly dividend and maintains a solid financial position to support future returns.
Find stocks that are even better than Xylem to buy today >>>
Badger Meter (BMI)
- Market Cap: $6 billion
- Industry: Electronic Equipment
- Analyst Upside: 23%
- P/E Ratio: 40
Company Overview: Badger Meter is a leading provider of advanced metering technologies, serving utilities and industrial customers with solutions for water and energy management. It is well-known for its innovative products like the ORION cellular data platform and precision water meters.
Business Strategy: Badger Meter offers smart water meters and monitoring solutions, which helps businesses and utilities track water usage and improve operational efficiency. The company’s strategy centers on expanding its metering product portfolio and enhancing its software solutions to support smart cities and water sustainability.
Recent Developments:
- Earnings & Profitability: Badger Meter has seen record operating margins, driven by a favorable sales mix, good pricing strategies, and strong operational execution.
- Business Growth Trends: The company continues to experience solid demand for its BlueEdge suite of smart water solutions, with notable growth in utility water sales and successful integration of recent acquisitions enhancing its product offerings.
- Shareholder Returns: Badger Meter has demonstrated a strong commitment to shareholder value by increasing its annual dividend rate, marking over three decades of consecutive dividend growth.
See Badger Meter’s growth trends and analyst forecasts on TIKR >>>
Ecolab (ECL)
- Market Cap: $68 billion
- Industry: Chemicals
- Analyst Upside: 19%
- P/E Ratio: 31
Company Overview: Ecolab is a global leader in water treatment and hygiene services, providing solutions across industries like food services, healthcare, and energy. Its key brands include Nalco Water, an essential provider of water treatment solutions, and Ecolab Food Safety, which ensures clean water and sanitation standards.
Business Strategy: Ecolab serves a wide range of industries by providing water treatment, cleaning, and hygiene solutions, often with long-term service contracts. Its strategic direction emphasizes growth in emerging markets and enhancing product innovation for sustainability.
Recent Developments:
- Earnings & Profitability: Ecolab has delivered strong earnings growth, supported by improved operating margins and effective cost management.
- Business Growth Trends: The company is experiencing solid growth across its key segments, particularly in water, hygiene, and infection prevention services, driven by strategic initiatives like the One Ecolab program and increasing demand in high-tech industries.
- Shareholder Returns: Ecolab has seen consistent dividend increases and share repurchase programs, underpinned by its solid cash flow and financial health.
Track Ecolab’s financials, growth trends, and analyst forecasts on TIKR. (It’s free) >>>
TIKR Takeaway
As water scarcity becomes one of the most pressing global challenges, companies like Ecolab (ECL), Badger Meter (BMI), and Xylem (XYL) are stepping up with innovative solutions that not only address environmental needs but also could be compelling long-term investment opportunities.
From smart water metering to advanced treatment technologies, these businesses could be key players in the future of water solutions.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
