Is Select Water Solutions, Inc. (WTTR) A Good Stock To Buy Now?

Suwin/Shutterstock.com

Select Water Solutions (WTTR) is positioned arsenic the starring h2o absorption and recycling level successful the US lipid and state industry, benefiting from almighty secular tailwinds arsenic shale accumulation drives escalating h2o volumes and operators progressively displacement from disposal to recycling and yet beneficial reuse.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

The company’s Water Infrastructure segment, which already delivers higher margins and long-duration contracted currency flows, is expected to beryllium the superior maturation motor arsenic recycling penetration rises toward 85–90% and emerging non-energy applications successful municipal, agricultural, and concern markets statesman to materialize from 2026 onward.

Select Water Solutions transformed its concern premix toward resilient production-linked revenues, reducing cyclicality and improving margins, with Water Infrastructure present representing an expanding stock supported by strategical M&A and disciplined superior allocation aft an equity raise.

Market underappreciates net power, statement 2028 EPS of $0.65 person to $1.00 arsenic Water Infrastructure compounds astatine 25%+ driven by adoption, web expansion, and high-return reinvestment opportunities. Applying a 25x aggregate to net implies a ~$25 valuation, supported by rerating from ~7x EBITDA toward ~10x arsenic the concern progressively resembles a scaled h2o infrastructure inferior alternatively than a cyclical oilfield services provider.

Upside is reinforced by a beardown equilibrium expanse astatine ~1.0x leverage, escaped currency travel generation, and a absorption squad led by founder-CEO John Schmitz with heavy manufacture credibility and alignment done equity ownership. Oil terms vulnerability and key-man hazard are considerations, but structural displacement toward recycling and infrastructure-led maturation underpins a compounding communicative with asymmetric upside arsenic the h2o rhythm becomes progressively industrialized wrong vigor production.

Previously, we covered a bullish thesis connected Halliburton Company (HAL) by Buffet_fromTemu successful October 2024, which highlighted drilling upside and geopolitical lipid terms tailwinds. HAL's banal has appreciated by astir 49.80% since our coverage. ChannelsTX shares akin presumption but emphasizes Select Water Solutions’ displacement toward h2o infrastructure, recycling, and secular maturation oilfield services, highlighting contracted revenues and beneficial reuse expansion.