- Mueller's operating results have been exceeding expectations, but the company is seeing input cost pressures and the Street has cooled on many water-driven industrials.
- Infrastructure spending on water projects may not help Mueller as much as some companies, but overall, higher spending on water infrastructure should drive more demand for its portfolio of valves.
- Demand for tech-based offerings like leak detection and condition monitoring is a key unknown; stimulus spending could finally help these long-disappointing units reach critical mass.
- Mueller looks modestly undervalued now, but margin pressure will likely remain a little while longer, and the sentiment is no longer a tailwind.
For further details see:
Mueller Water Lagging As Investors Turn Away From A Once-Hot Sector