
Valuation concerns capped gains for Badger Meter (NYSE: BMI) stock in 2025, with subsequent events sending the market into a correction that is now overextended and ready to rebound.
While valuation was a concern, the drastic 40% reduction in share price has realigned the market with reality, and the reality is good. Trading at long-term lows, the stock is now valued at less than 20X its 2030 earnings, pricing in sustained earnings growth and suggesting a 50% stock price rebound could occur in the upcoming quarters.