Year-1 Report Card

< Tracking Winners and Losers >

We have three winners and five losers, after our first year.

Between July and October of 2025, Water Sector LTP posted eight stock analyses, each with a recommendation: five BUYS, one SELL, and two HOLDS. All eight stocks are pure water plays: Xylem, Pentair, Core & Main, Advanced Drainage Systems, Badger Meter, Watts Water Technology, Primo Brands, and Mueller Water Products.

The first question is, did any of our BUY recommendations outperform the S&P 500 Index? If so, they would be winners. Secondly, did our one SELL recommendation underperform the S&P 500 – that would be a winner also. Below we answer those questions for each of the stocks that we analyzed, in chronological order. [“Price today” refers to the price of a stock on 8/6/26.]

Preview: Our biggest winner was Watts Water Technologies (WTS), which we rated a BUY on 9/20/25. WTS has significantly outperformed the S&P 500 Index between that date and today; in fact, WTS’s gain (33%) doubled that of the S&P 500 (16%).

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Xylem (XYL) – BUY recommendation on 7/10/25

Price of XYL on 7/10/25: 131.60  --- Price today: 120.63 (8% loss over 13 months)

Price of S&P 500 Index on 7/10/25: 6307.25 --- Price today: 7714.81 (22% gain)

Grade: LOSER

Since 7/10/25, XYL has underperformed the S&P 500 Index by 30% over 13 months.

Pentair (PNR) – BUY recommendation on 7/22/25

Price of PNR on 7/22/25: 103.08 --- Price today: 69.96 (32% loss over 12.5 months)

Price of S&P 500 Index on 7/22/25: 6389.45 --- Price today: 7714.81 (21% gain)

Grade: BIG LOSER

Since 7/22/25, PNR has underperformed the S&P 500 Index by 53% over 12.5 months.

Core & Main (CNM) – BUY recommendation on 8/8/25

Price of CNM on 8/8/25: 63.95 --- Price today: 45.85 (28% loss over 12 months)

Price of S&P 500 Index on 8/8/25: 6389.45 --- Price today: 7714.81 (21% gain)

Grade: BIG LOSER

Since 8/8/25, CNM has underperformed the S&P 500 Index by 49% over 12 months

Advanced Drainage Systems (WMS) – HOLD recommendation on 8/23/25

Price of WMS on 8/23/25: 147.29 --- Price today: 147.50 (1% gain over 12 months)

Price of S&P 500 Index on 8/23/25: 6466.91 --- Price today: 7714.81 (21% gain)

Grade: WEAK WINNER

If you held onto WMS shares since 8/23/25, your investment held its value; but you could have earned a 21% return by selling WMS and buying the S&P 500 Index.

Badger Meter (BMI) – HOLD Recommendation on 9/9/25

Price of BMI on 9/9/25: 179.44 --- Price today: 137.44 (23% loss over 11 months)

Price of S&P 500 Index on same date: 6466.91 --- Price today: 7714.81 (19% gain)

Grade: LOSER

If you held BMI since 9/9/25, you missed an opportunity to sell it and buy S&P Index to earn a 19% gain.

Watts Water Technologies (WTS) – BUY recommendation on 9/20/25

Price of WTS on 9/20/25: 280.94 --- Price today: 374.11 (33% gain over 11 months)

Price of S&P 500 Index on 9/20/25: 6664.36 --- Price today: 7714.81 (19% gain)

Grade BIG WINNER

Since 9/20/25, WTS has outperformed the S&P 500 Index by 14% over 11 months.

Primo Brands (PRMB) – SELL recommendation on 10/7/25

Price of PRMB on 10/7/25: 21.95 --- Price today: 23.96 (9% gain over 10 months)

Price of S&P 500 Index on 10/7/25: 6714.59 --- Price today: 7714.81 (15% gain)

Grade: WINNER

PRMB underperformed the S&P 500 Index by 6% over the past 10 months.

Mueller Water Products (MWA) – BUY recommendation on 10/22/25

Price of PRMB on 10/22/25: 25.85 --- Price today: 27.17 (5% gain over 10 months)

Price of S&P 500 Index on 10/22/25: 6600.40 --- Price today 7714.81 (17% gain)

Conclusion: LOSER

Since 10/22/25, MWA has gained 5% but underperformed the S&P 500 Index by 12%.

Conclusion

Long-term perspective (LTP) really means longer than a year -- more like three to five years -- but it is useful to measure our results from time to time. Our first year was dismal.