The 6 best water stocks for 2026

Uli Ebensperger By Uli Ebensperger

Last Updated: 16 September 2026

Illustration of a seawater desalination plant on the coast


The best water stocks for 2026, according to the Ziggma Stock Score, are Consolidated Water (CWCO), Badger Meter (BMI), Watts Water Technologies (WTS), Zurn Elkay Water Solutions (ZWS), Xylem (XYL) and Ecolab (ECL). The Ziggma Stock Score rates fundamental quality from 0 to 100. All six are water solutions companies that treat, move, measure or conserve water. Each one has a Ziggma Stock Score of at least 70. Each one also has a solid impact rating. The list covers desalination, smart metering, building water systems, pumps and industrial water treatment.

6 stocks Ranked by Ziggma Stock Score Minimum score 70 Solid impact rating

Key takeaways

Why water stocks matter in 2026

Data centers are a growing customer group for water solutions companies. Large computing sites need water to cool their servers.

Lawrence Berkeley National Laboratory estimated that US data centers consumed about 17 billion gallons of water directly in 2023. It projects that figure could double or quadruple by 2028. The national total is still small. The US Environmental Protection Agency (EPA) estimates that household leaks waste about 50 times more water each year than US data centers consumed directly in 2023. Well-designed cooling systems cut data center water use further by recirculating the same water instead of evaporating it. That recycling depends on treatment, pumps and monitoring. Ecolab counts data centers and microelectronics plants among its high-technology customers. Xylem linked part of its 2026 performance to AI-related water demand.

Drinking water rules keep treatment spending on utility budgets.

The EPA set enforceable limits of 4 parts per trillion for the PFAS chemicals PFOA and PFOS in 2024. In May 2026, the EPA proposed keeping those limits while letting water systems request two extra years to comply, to 2031. Public water systems still have to finish initial PFOA and PFOS monitoring by April 2027.

Utilities also need to know where their water goes. Badger Meter and Xylem sell smart water meters and leak detection systems that help utilities find losses in their networks.

See how your stocks score on quality and impact

Ziggma shows the Ziggma Stock Score and impact rating for every stock in your portfolio.

Analyze my portfolio

How this list of water companies was built

This list ranks six U.S.-listed water solutions companies by Ziggma Stock Score. Ziggma first identified companies that treat, move, measure or conserve water. Regulated water utilities were left out because they deliver water rather than sell water solutions. Ziggma then kept only companies with a Ziggma Stock Score of at least 70. Each company also needed a solid impact rating, anywhere from Neutral to Profound. Companies with a Negative impact rating were left out. The Ziggma Stock Score rates fundamental quality from 0 to 100 across four pillars: growth, valuation, profitability and financial health. The impact rating measures the real-world effect of a company's products and operations. That's different from an ESG rating, which measures risk to the company. When two companies share a Ziggma Stock Score, the one with the higher impact rating ranks first. The six stocks are a curated selection, not the result of a full market screen. Scores and impact ratings were checked on 16 September 2026 and change as new data arrives.

The 6 best water companies compared

CompanyZiggma Stock ScoreImpact ratingWater focus
Consolidated WaterCWCO99PositiveSeawater desalination and water treatment plants
Badger MeterBMI98PositiveSmart water meters and leak detection
Watts Water TechnologiesWTS88MixedValves, backflow prevention and water quality products for buildings
Zurn Elkay Water SolutionsZWS82MixedDrinking water fountains, bottle fillers and drainage
XylemXYL80PositivePumps, treatment, metering and water analytics
EcolabECL72ProfoundIndustrial water treatment programs

Ziggma Stock Score (0 to 100): growth, valuation, profitability and financial health. Impact rating: the real-world effect of a company’s products and operations. Checked 16 September 2026.

The 6 best water companies to invest in

1. Consolidated Water (CWCO)

Ziggma Stock Score: 99 · Impact rating: Positive
Consolidated Water designs, builds and operates seawater desalination plants and water treatment infrastructure. It sells drinking water to customers in Grand Cayman and supplies bulk water to the government water utility in The Bahamas. Its US business builds and runs treatment plants, including drinking water and wastewater recycling projects in Colorado and California. In 2026 Consolidated Water received early authorization to start work on a seawater desalination plant in Kalaeloa, Hawaii. It's a small company, so single contracts can move its results from quarter to quarter.

2. Badger Meter (BMI)

Ziggma Stock Score: 98 · Impact rating: Positive
Badger Meter makes smart water meters, flow instruments and the cellular and software systems that read them. Utilities use Badger Meter systems to measure water use and detect leaks in their networks. In 2026 Badger Meter bought UDlive, adding sewer line monitoring to its range. The company has raised its dividend every year for more than three decades. Utility projects ship in phases, so Badger Meter's sales can be uneven from one year to the next.

3. Watts Water Technologies (WTS)

Ziggma Stock Score: 88 · Impact rating: Mixed
Watts Water Technologies makes valves, backflow preventers, drainage and water quality products for homes and commercial buildings. Its products control the safety, flow and temperature of water inside buildings. Heating products are also part of the Watts portfolio. Data centers have become one of Watts' main sources of growth, with demand for cooling products such as its CoolVault thermal storage tanks.

4. Zurn Elkay Water Solutions (ZWS)

Ziggma Stock Score: 82 · Impact rating: Mixed
Zurn Elkay Water Solutions focuses entirely on water in buildings. It makes filtered drinking water fountains and bottle-filling stations for schools, offices and public buildings. It also sells valves, drainage and backflow prevention systems. In 2026 Zurn Elkay bought Intellihot, adding high-efficiency water heaters. The company runs its operations on the Zurn Elkay Business System, which is built on 80/20 principles.

5. Xylem (XYL)

Ziggma Stock Score: 80 · Impact rating: Positive
Xylem makes pumps, treatment systems, smart meters, leak detection tools and analytics software for water and wastewater. Utilities and industrial customers use Xylem technology to move, treat, test and manage water. Xylem bought Evoqua in 2023, which expanded its treatment business. The company has linked part of its recent growth to AI-related water demand.

6. Ecolab (ECL)

Ziggma Stock Score: 72 · Impact rating: Profound
Ecolab sells water treatment chemistry, equipment and monitoring programs to industrial and commercial customers. Its programs help customers reduce, reuse and treat water in cooling, boiler and process systems. Water is Ecolab's largest reportable segment. Its customers include data centers and microelectronics plants alongside food and manufacturing companies.

The bottom line on water stocks for 2026

Water solutions companies sell the equipment, chemistry and software that keep water safe and moving. Demand comes from utilities, commercial buildings and industrial sites, including data centers. Drinking water rules add a steady reason for utilities to spend on treatment and monitoring. The six stocks on this list pair that demand with strong fundamentals, measured by the Ziggma Stock Score. Each one also has a solid impact rating. Scores and ratings change, so the list is worth checking again before any decision. This article is for information only and is not investment advice.

Find the water stocks in your portfolio

Analyze my portfolio

Frequently asked questions about water stocks

What are water stocks?

Water stocks are shares of companies that treat, move, measure, conserve or deliver water. The group includes equipment makers such as Xylem, treatment companies such as Ecolab, and regulated utilities such as American Water Works. This list covers water solutions companies only. Ziggma’s list of the best sustainable stocks covers companies across more sectors.

Are water utilities good investments?

Water utilities earn rates set by state regulators, which caps their returns. Their revenue is steady because people need water in every economy. Growth mostly comes from investing in pipes and plants and from buying smaller systems. American Water Works and Essential Utilities agreed to merge in 2025, with closing expected by the end of the first quarter of 2027. Utilities aren’t on this list because it covers water solutions companies. You can compare utilities by Ziggma Stock Score in the Ziggma free stock screener.

Why aren’t all water companies on this list?

This list includes only water solutions companies with a Ziggma Stock Score of at least 70 and a solid impact rating. Veralto owns the Hach and Trojan Technologies water brands but scored below 70. Mueller Water Products and Advanced Drainage Systems scored above 70 but have Negative impact ratings. Ziggma’s list of the best climate stocks uses the same score-first approach for companies cutting emissions.

How do data centers affect water stocks?

Data centers use water to cool their servers, and that demand reaches companies that treat, pump and monitor industrial water. Lawrence Berkeley National Laboratory estimated that US data centers consumed about 17 billion gallons of water directly in 2023. Ecolab serves data centers and microelectronics plants. Watts Water Technologies sells cooling products to data centers. Ziggma’s list of the best climate tech stocks covers companies building the energy side of that growth.

Which water stock is exposed to desalination?

Consolidated Water (CWCO) is the desalination specialist on this list. It builds and operates seawater desalination plants in the Caribbean and the US. Desalination removes salt from seawater to produce drinking water. It uses more energy than treating fresh water, and Consolidated Water passes higher energy costs through to its bulk water customer in The Bahamas. Ziggma’s list of the best renewable energy stocks covers the companies generating clean power for energy-intensive plants like these.

How does PFAS regulation affect water companies?

PFAS are long-lasting chemicals that the US Environmental Protection Agency (EPA) regulates in drinking water. EPA set enforceable limits for PFOA and PFOS in 2024, and public water systems must complete initial monitoring by April 2027. Utilities that find PFAS need treatment and testing equipment. That spending reaches water solutions companies that sell treatment systems, instruments and monitoring. Ziggma’s list of the best green stocks covers companies that address other kinds of pollution.

Do water stocks help with water scarcity?

Water solutions companies sell technology that adds to or stretches water supplies. Desalination turns seawater into drinking water, which Consolidated Water does in the Caribbean and the US. Smart meters and leak detection from Badger Meter and Xylem help utilities cut water lost in their pipes. Ecolab’s water programs help industrial customers reduce and reuse the water they draw. Desalination adds new fresh water, while metering and reuse make existing supplies go further. How Ziggma’s impact data works explains how impact ratings capture a company’s real-world effect.

Are water stocks defensive?

Water utilities are the most defensive part of the group because demand for drinking water barely changes with the economy. Water equipment companies are more cyclical. Their sales depend on construction activity, municipal budgets and industrial spending. Badger Meter’s sales, for example, shift with the timing of utility projects. The best stock screener for ESG and impact investors lets you compare the financial health of cyclical and defensive stocks side by side.

What risks do water stocks carry?

Interest rates matter because utilities and their customers fund large, long projects with debt. Project timing can make sales uneven for companies that sell to utilities. Small companies such as Consolidated Water can see results move sharply on single contracts. Regulation can change, as EPA’s 2026 proposals to extend PFAS compliance deadlines show. Ziggma’s list of the best fossil-free stocks covers companies with no exposure to another source of regulatory risk, fossil fuels.

How can I see the Ziggma Stock Score and impact rating of stocks I own?

Ziggma shows the Ziggma Stock Score and impact rating for every stock in a connected or uploaded portfolio. It also flags concentration and volatility risk across the whole portfolio. Ziggma compares its portfolio features with other platforms in the best portfolio analysis tools for individual investors.