Is Badger Meter (BMI) The Best Under-The-Radar Small-Cap Stock to Buy Now?

We recently published Top 10 Buzzing Stocks to Watch as Analysts Predict AI-Led Bull Market Will Continue. Badger Meter Inc (NYSE:BMI) is one of the top buzzing stocks to watch.

Badger Meter Inc (NYSE:BMI) makes flow measurement, quality and control solutions. It sells utility water smart metering solutions and software technologies. Talking about his favorite small-cap picks, Chris Retzler, Needham portfolio manager, said the following in a recent interview on CNBC:

“Badger Meter Inc (NYSE:BMI), which is a water meter business where meters run out over time. It’s water utilities, and with infrastructure being built out, we think that Badger Meter is a really well-run company.”

The Brown Capital Management Small Company Fund stated the following regarding Badger Meter, Inc. (NYSE:BMI) in its Q1 2025 investor letter:

“In the first quarter of 2025, we added three companies, Badger Meter, Inc. (NYSE:BMI), Red Violet (RDVT) and TransMedics (TMDX). Badger Meter makes water meters and other devices primarily for water utilities to measure usage by its customers and to monitor conditions across its system. In an industry that has historically grown in the single digits, Badger Meter has generated a revenue compound annual growth rate of 14% over the last five years. The company has achieved this growth rate primarily by 1) adding layers of technology on top of traditional monitoring systems and 2) by improving the accuracy and capabilities of its advanced meters which are replacing aging conventional meters in water system infrastructure. Badger’s technology advancements include optimizing the transmission of usage data from meters and using sensors to monitor water pressure across the system, to detect leaks and to perform in-line testing of water quality. All of this data flows into Badger’s robust analytics software platform, which allows water-utility customers to have better visibility across their entire system and make better decisions. The company has a strong balance sheet with $295 million in cash and no debt and has been profitable for many years. With $827 million in revenue in 2024, we believe Badger Meter has a long runway for growth as it sells into a total addressable market which we estimate to be around $20 billion and growing.”

While we acknowledge the potential of BMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.