Mueller is a Small-Cap Powerhouse

MLI may not be a well-known name, but the company has been serving customers since 1917 and has a market capitalization of over $6 billion. It makes copper, brass, aluminum, and plastic products used for construction and industrial applications. While it primarily serves refrigeration customers, a new acquisition unearthed utilities and telecommunication market opportunities.

It recently reported second-quarter earnings, with revenue growing to nearly $1 billion, an 11.2% year-over-year increase, on increased shipments in most of its businesses. Over the past five years, the company’s revenue grew at a compound annual growth rate of 6.5%. Also, MLI’s quarterly per-share earnings were $1.41, which helps it fund a dividend of $0.20 per share (current yield of 1.42%).

It’s no wonder MLI shares are up 39% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Piping Capital into Mueller Shares

Institutional volumes reveal plenty. Recently, MLI has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MLI shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of materials names are under accumulation right now. But there’s a powerful fundamental story happening with Mueller.

Mueller Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MLI has had strong sales and earnings growth:

• 3-year sales growth rate (+16.2%)
• 3-year earnings growth rate (+89.2%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +6%.

Now it makes sense why the stock has been powering to new heights. MLI has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Mueller has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when MLI was a top pick…increasing in value along the way:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Mueller Price Prediction

The MLI rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in MLI at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.