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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen8/5/2016 11:09:29 AM
   of 1084
 
Corporate Consolidators Target America's Ailing Water Markets



A number of recent crises has revealed that America needs to spend time, effort and much money to make its water great again.

Case in point: Flint, Mich., which operates its own water utility. The water supply for the city of about 100,000 became contaminated with lead that sickened some residents after Flint switched to getting its water from the historically polluted Flint River in 2014.

The outcome spurred worldwide headlines and sent consumers and water managers across the country to seek stringent reviews of their local water supplies. Among stocks, the increased awareness helped boost the publicly traded companies collected in the Utilities-Water Supply group, one of the 197 industries tracked by IBD. The 13-stock group is collectively up 28% for the year through Thursday, vs. gains averaging less than 10% over the prior two years.

Generally considered defensive plays, most of the group's stocks offer modest dividends and tend to be fairly resilient in heaving markets. As the water-quality story has gained attention, the industry has taken on growth characteristics similar to those that made defensive groups such as electrical utilities and auto parts retailers top performers through some recent, challenging markets.

investors.com

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