2024-07-26 12:21:46 ET
Summary
- Q2 saw soft revenue due to weather delays and destocking (likely tied to softening construction and resource demand), but water treatment and surface pumping showed encouraging growth.
- Short-term headwinds in markets like agriculture, construction, and resources could persist a little longer, but FELE benefits from the growing need for clean water and is poised for above-average growth.
- Shares aren't cheap, but strong margin performance and above-average long-term secular growth opportunities argue for a premium multiple and this is definitely a watch-list name.
Clean water may not be as exciting as AI or automation and electrification as far as long-term secular trends go, but a growing population needs clean water to survive and companies that provide machinery and technology to ensure clean water supplies are likely to see above-average growth for some time to come....
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For further details see:
Trends Should Start Flowing In A Better Direction For Franklin Electric