Published on 25 Aug 2022 on Insider Monkey via Yahoo Finance

10 Best Water Stocks to Buy Now

In this article, we discuss the 10 best water stocks to buy now. If you want to skip our detailed analysis of the water sector, go directly to the 5 Best Water Stocks to Buy Now.

Commodity prices increased significantly during 2022 due to rising inflation and supply chain-related challenges. While crude oil and natural gas prices were in the limelight, there was little to no discussion about the outlook of one of the most important commodities: water. In the realm of water resources, stakeholders lack a systematic foundation for making economically sound decisions which have resulted in many governments struggling to develop integrated and sustainable water policies. As a result, water resources experience inefficient distribution. Even in nations that have the most sophisticated water legislation, the management of the water industry does not yet meet the standards befitting one of our most precious natural resources.

According to McKinsey, the US water system requires investment at a magnitude that has never been seen before. In the United States, leaks result in the loss of 14% to 18% of treated potable water every day. The water and sanitation infrastructure of the country was largely constructed in the late 90s. Ever since, the proportion of infrastructure investment by the central government has decreased, placing an increased burden on state and local governments as they try to balance competing financing objectives. Water-pipe substitution rates are expected to surge in 2035 to 16,000 - 20,000 miles of rebuilt pipes annually, according to the US Environmental Protection Agency (EPA). This is a four-fold increase over the present replacement rate of 4,000 to 5,000 miles yearly.