- Pentair is scheduled to report fourth quarter and full-year 2020 earnings pre-market on Jan. 28.
- Pentair has achieved earnings beats for the last six quarters, which, together with solid earnings growth, could be a reason for present P/E multiple being well above historical levels.
- The biggest danger to Pentair's share price, and consequently shareholder returns, is a contraction of its P/E multiple closer to historical levels.
- Shareholders should look to see Pentair achieve another earnings beat for Q4 2020, and be very concerned at any earnings miss, which could trigger multiple contraction.
For further details see:
Pentair: Good EPS Growth Prospects, Multiple Contraction A Danger