Pentair Primed for Growth

PNR is a water products company with lines of business in the industrial, commercial, and residential markets. One of its specialties is swimming pools. And despite new residential pool construction slowing in 2024, the base of pools installed is still growing and customers will need to maintain those pools in the future.

The company reported second-quarter earnings of $1.22 per share, which beat consensus expectations and the company’s guidance. EPS was up 18% over the prior year’s quarter. Also, pool sales grew, snapping a seven-quarter streak of declining results. PNR reported successful cost containment efforts as well, which when combined with lower financing costs due to interest rate reductions, should boost the company’s bottom line.

It’s no wonder PNR shares are up 31% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Pentair Shares in Demand

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

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

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

Pentair Fundamental Analysis

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

• 3-year sales growth rate (+11.3%)
• 3-year earnings growth rate (+23.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +12.8%.

Now it makes sense why the stock has been powering to new heights. PNR 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.

Pentair 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 PNR was a top pick…driving value with time:

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.

Pentair Price Prediction

The PNR 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 PNR 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.