What Happened?
Shares of water control and measure company Badger Meter (NYSE: BMI) jumped 5.9% in the morning session after the company reported third-quarter 2025 earnings that beat analyst forecasts for both revenue and profit.
Badger Meter posted revenue of $236 million, a 13% increase from the previous year, surpassing the expected $231.85 million. The company's earnings per share (EPS) came in at $1.19, which was higher than the $1.14 analysts had predicted and marked a 10% rise year-over-year. The strong performance was linked to growing demand for digital water technology solutions. In addition to the top- and bottom-line beats, the company also achieved improved operating margins and reported a record free cash flow of $48.2 million, signaling solid financial health.
Is now the time to buy Badger Meter? Access our full analysis report here.
What Is The Market Telling Us
Badger Meter’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 3.5% on the news that Stifel lowered its price target on the stock to $208 from $224, though it maintained a Hold rating.
The analyst firm noted that Badger Meter was well-positioned to benefit from the move toward connected technology in the water utility sector. Despite this positive view of the business, Stifel justified its Hold rating by pointing out that the company's shares traded at a significant premium compared to historical averages and its peers. The stock's movement also occurred one day before Badger Meter was scheduled to release its third-quarter 2025 earnings results.
Badger Meter is down 11.7% since the beginning of the year, and at $187.01 per share, it is trading 26.4% below its 52-week high of $254.17 from June 2025. Investors who bought $1,000 worth of Badger Meter’s shares 5 years ago would now be looking at an investment worth $2,448.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
