Where you find water, you'll likely find Evoqua Water Technologies. Operations of the 2017 IPO flow across a wide range of industries, including energy generation, food & beverage safety and production, health care, manufacturing and many more. Running through each is the core goal of Evoqua: sustainability.
Last month, Evoqua made the Corporate Knights' 2022 100 Most Sustainable Corporations in the World. According to Corporate Knights, which labels itself a voice of clean capitalism, the list highlights the top 1% of companies in the world for sustainability.
Evoqua received the honor for its dedication to water-related sustainability and its commitment to internal ESG initiatives. (ESG covers environmental, social and governance issues.)
AQUA stock has also earned as spot on the IBD Breakout Stocks Index as it tries to stream toward a fresh breakout.
Who Joins Sustainability Leader Evoqua On The IBD Breakout Stocks Index?
Evoqua Makes Splash With 100% Earnings Growth
Headquartered in Pittsburgh, Penn., Evoqua has worked to protect water and the environment for over 100 years. The water treatment solutions firm helps more than 38,000 customers solve water challenges at over 200,000 installations worldwide. Evoqua operates in more than 150 locations across 10 countries.
On Feb. 1, Evoqua reported a 100% spike in Q4 earnings growth. Over the last three years, the company has shown sustainability in its fundamentals with average annual EPS growth of 28%. Sales growth has been more tepid, averaging just 2% over the same period.
In a sign of institutional support, 40 funds with an A or better rating from IBD own AQUA stock.
Can Sustainability Leader Drive Sustainable Breakout?
After an initial spurt following its IPO in November 2017, support for AQUA stock evaporated, leading to a sharp, yearlong decline. Evoqua returned to its old high in February 2020 — just before the coronavirus crash contaminated a new climb.
Since coming off its pandemic lows in March 2020, Evoqua soared 597% until pulling back at the end of November 2021 to form its current chart pattern. AQUA stock is now working on a double bottom with a 48.59 buy point.
Common in choppy markets, double bottoms reflect the volatility in the stock market indexes. AQUA stock has navigated those troubled waters, finding support at its 40-week moving average, then moving back above its 10-week line.
Heading in to Wednesday's close, Evoqua has bounced off its 50-day line, rising over 1%, albeit in tepid volume.
See if the market indexes can shake off the current turbulence, and Evoqua can maintain its reputation for sustainability and close in on its 48.59 entry.
Keeping in mind the uncertainty in the general market amid Russia-Ukraine tensions, more aggressive investors might also look for an earlier entry using the shakeout + 3 formation.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
