The 4 Best Plumbing Stocks to Buy Now - December 2023

Ben Broadwater

Updated December 8, 2023

The plumbing industry is a large and growing industry, and there are a number of plumbing stocks to buy now that investors can consider for their portfolios. But first, let’s take a closer look at the current state of the plumbing industry.

best plumbing stocks to buy now

Plumbing Stocks to Buy Now – Growth Factors

The plumbing industry is expected to grow by 4.2% this year, according to IBISWorld. With an estimated annual revenue of over $100 billion in the United States alone. Plumbing industry growth is being driven by a number of factors, including:

  • Increased demand for new construction: The housing market is strong, and new construction is on the rise. This is creating demand for plumbing services, as new homes need to be plumbed.

  • Increased demand for repair and maintenance: Existing homes are aging, and this is creating demand for plumbing repair and maintenance services.

  • Government regulations: Government regulations are requiring more stringent plumbing standards. This is creating demand for plumbing services, as businesses and homeowners need to comply with these regulations.

The plumbing industry is facing some challenges, however. For example, one challenge is the labor shortage. The plumbing industry is facing a shortage of skilled workers. This is making it difficult for plumbing companies to find qualified employees. Another challenge is the rising cost of materials. The cost of materials, such as copper and PVC pipe, has been rising in recent years. This is putting pressure on plumbing companies’ profit margins.

Here are 4 of the Best Plumbing Stocks to Buy in December 2023:

  • American Water Works (NYSE: AWK)
  • WW Grainger Inc (NYSE: GWW)
  • Shawcor (TSX: SCL)
  • Watts Water Technologies (NYSE: WTS)

American Water Works (NYSE: AWK)

Best Plumbing Stocks to Buy Now - American Water Works Co Inc (AWK)

First on our list of the best plumbing stocks to buy now is AWK. A leading water utility company that provides water and wastewater services to over 15 million people in the United States. The company has a strong track record of dividend growth and is well-positioned to benefit from the increasing demand for water and wastewater services.

Also, in the most recent quarter, AWK reported earnings of $0.89 per share, beating analyst expectations of $0.87 per share. Revenue for the quarter was $1.2 billion, up 5.2% from the same quarter last year. AWK’s dividend yield is 2.3%.

WW Grainger Inc (NYSE: GWW)

plumbing stocks - GWW stock

Founded in 1927, WW Grainger offers safety and security supplies, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance supplies, and metalworking and hand tools.

Company revenue has been growing each year. WW Grainger saw a 16.94% increase in 2022. Essentially since the start of the COVID-19 pandemic, this stock has done nothing but soar. Since March of 2020, WW Grainger stock has gained 278%.

Shawcor (TSX: SCL)

SCL is a global leader in the design, manufacture, and installation of piping systems. The company’s products are used in a variety of industries, including water, wastewater, energy, and mining. Shawcor has a proven history of growth and is ready to take advantage of the growing demand for its products and services.

SCL also beat expectation in the most recent quarter, reporting earnings of $0.42 per share, outpacing analyst expectations of $0.39 per share. Revenue for the quarter was $1.1 billion, up 12% from the same quarter last year. Shawcor’s dividend yield is 1.3%.

Watts Water Technologies (NYSE: WTS)

Last on our list of the best plumbing stocks to buy now is WTS. They are a leading manufacturer of plumbing products and services. The company’s products are used in a variety of residential, commercial, and industrial applications. Additionally, WTS has a strong track record of growth and is well-positioned to benefit from the increasing demand for its products and services.

In the most recent quarter, WTS reported earnings of $0.85 per share, beating analyst expectations of $0.82 per share. Revenue for the quarter was $1.1 billion, up 10% from the same quarter last year. WTS’s dividend yield is 1.5%.

Best Plumbing Stocks to Buy Now – Financial Information 

CompanyStock PriceMarket CapPE RatioDividend Yield
American Water Works (AWK)$140.08$27.42 billion24.92.30%
WW Grainger Inc. (GWW)$806.90$40.48 million24.580.92%
Shawcor (SCL)$32.41$3.4 billion20.41.30%
Watts Water Technologies (WTS)$103.85$18.1 billion22.11.50%
  • Company Stock Price is the price at which a company’s shares are currently trading. It can be used to compare the value of different companies, or to track the performance of a particular company over time.

  • Market Cap is the total value of all of a company’s outstanding shares. It can be used to compare the size of different companies, or to determine how much a company is worth.

  • PE Ratio is a measure of how expensive a company’s stock is relative to its earnings. A high PE ratio means that investors are willing to pay a premium for the stock, perhaps because they believe the company’s earnings will grow in the future. A low PE ratio means that investors believe the stock is undervalued.

  • Dividend Yield is the percentage of a company’s earnings that is paid out to shareholders in the form of dividends. A high dividend yield means that investors can earn a significant income from their investment, even if the stock price doesn’t go up.

These metrics can be used by investors to make decisions about which stocks to buy or sell. However, it’s important to remember that past performance is not a guarantee of future results. Investors should always do their own research before making any investment decisions.

Final Thoughts

In conclusion, these are just a few of the best plumbing stocks to buy now that are worth considering for your portfolio. When choosing plumbing stocks, it is important to consider the company’s financial strength, growth prospects, and competitive position. You should also consider your own investment goals and risk tolerance.

It is important to note that all investments carry some risk, and there is no guarantee that any of these stocks will perform well in the future. However, the stocks listed above are all well-positioned to benefit from the growing demand for plumbing products and services.

By considering these factors, investors can help to ensure that they are investing in the best plumbing stocks to buy now.

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