The 7 Best Water Stocks for 2026

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.

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. The merger cleared federal antitrust review in August 2026, and the companies still expect to close 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.

This list includes only water solutions companies with a Ziggma Stock Score of at least 65 and a solid Impact Score. Mueller Water Products and Hawkins scored above 65 but have Negative Impact Scores. Advanced Drainage Systems has a Negative Impact Score and scored below 65. A.O. Smith scored above 65 but was left out because it mainly makes water heaters and boilers rather than water treatment, metering or flow equipment. Regulated utilities such as American States Water are left out because they deliver water rather than sell water solutions. Ziggma’s list of the best climate stocks uses the same score-first approach for companies cutting emissions.

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.

Consolidated Water (CWCO) is the desalination specialist on this list. It operates seawater desalination plants in the Cayman Islands, The Bahamas and the British Virgin Islands, and runs water treatment and reuse plants in the US. It also holds a contract to build a seawater desalination plant in Kalaeloa, Hawaii. 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.

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.

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. 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. Veralto’s Trojan Technologies UV systems disinfect treated wastewater so it can be reused. Desalination adds new fresh water, while metering and reuse make existing supplies go further. How Ziggma’s impact data works explains how the Impact Score captures a company’s real-world effect.

Ziggma updates this list when new Ziggma Stock Scores and Impact Scores change the ranking. The latest update, on 12 November 2026, moved Badger Meter to first place and added Veralto. The previous update was in September 2026. Scores can move between updates as companies report new results. The best stock screener for ESG and impact investors shows current Ziggma Stock Scores for every water stock.

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.

Ziggma shows the Ziggma Stock Score and Impact Score for every stock in a connected or uploaded portfolio. Free accounts see both scores on sample portfolios. Scoring your own holdings needs Ziggma Premium, which comes with a 7-day free trial. Ziggma 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.