Mueller Water Products (MWA) = Why Did This Stock Jump +7% on Monday?

Let’s set the stage. 

The stock market has been in freefall for the past couple weeks. That includes a serious break below the 200 day moving average on Monday having more investors worried about this being the start of a new bear market. 

Amazingly Mueller Water Products (MWA), part of my Zen Investor portfolio, rallied +7.4% on the session on greater than 3X normal volume. 

Here is the craziest part…there is absolutely no news on why this happened. 

No analyst upgrade. No addition to an important stock index. No public buyout rumors. 

The only logical explanation is that the Smart Money crowd knows something up. Like a big hedge fund getting a tip and snapping up shares when everyone else is asleep at the wheel. 

This also makes sense given that MWA scores in the top 1% for our Sentiment indicator which is focused on Smart Money activity. (Learn more about that in this recent article: Follow the Smart Money Crowd to Better Stocks). 

It will be interesting to see what facts come to light in the days that follow. For now the best I can do is to give you a more traditional analysis on why this is one of my favorite stocks: 

I appreciate that at first you will not jump out of your chair to buy shares of Mueller Water Products (MWA) because it doesn’t have the same appeal as an innovative company in AI, crypto, or biotech company. 

But how about just good old fashioned…they are growing gangbusters and the stock is worth a lot more because other investors are also sleeping on this pick.

So hang in there with me for a couple minutes to get the full story as to why MWA might deserve a spot in your portfolio. 

Mueller’s approach to water management is at an appealing intersection between necessity and growth industry as too much of the world does not have drinkable water. 

So it provides a very stable part of the business, which typically makes it more resilient in tough times. And then it excels in the good times based upon the compelling growth aspect.

That growth shows up in the current 26% year over year EPS growth expectation. Even better is appreciating that their last 4 quarterly reports have led to an average 45% earnings beat. 

If this trend continues it means that annual growth will be MUCH higher than advertised. And yes this will lead to ample share price gains. 

The Zen Ratings analysis of 115 different factors for the firm are also mighty impressive: 

A rated Strong Buy (top 1% of 4,600 stocks analyzed)

Top 18% Growth

Top 15% Momentum

Top 15% Safety (which is becoming more and more valuable these days)

Top 10% Financials

Top 7% AI rating (learn more about that here)

Top 1% for Sentiment

Usually having safer stocks comes at the expense of attractive growth and timely price action. Clearly not the case with MWA given how well it scores across all these aspects of the Zen Ratings model. 

My bet is that MWA has a real shot at reaching $35 this year and providing a chance to double as we roll into 2026. That gives us plenty of reason to pipe in shares now in around $27. 

What To Do Next?

Mueller Water Products (MWA) is just one of the attractive stocks found in my Zen Investor portfolio.

We are harnessing the power of the Zen Ratings model as well as tapping top Wall Street analyst recommendations to find more stocks with 100%+ upside potential. 

In addition I have recently added 3 stocks in more defensive industries to better handle the recent market volatility. Gladly, all 3 also have impressive upside potential just like MWA. 

If that is of interest to you, then please click below…

Discover the Zen Investor portfolio & Top Stocks Now >

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

What to Do Next?

• 8 Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return > 
• 4 Step Process to Find More 100%+ Stock Winners >

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