1 Overlooked ETF to Invest in Small-Cap Tech Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Should l Buy BMI?
Source: NASDAQ.COM
Small-Cap Stocks Surge: Small-cap stocks, particularly represented by the Russell 2000 Index, have gained over 10% year-to-date due to rising expectations for an interest rate cut by the Federal Reserve, attracting investors seeking alternatives to high-valued mega-cap tech stocks.
Invesco S&P SmallCap Information Technology ETF (PSCT): The PSCT ETF focuses on small-cap tech companies and has shown potential for growth despite recent underperformance compared to larger indices; it offers a unique investment opportunity in the burgeoning small-cap tech sector with a competitive expense ratio.
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Analyst Views on BMI
Wall Street analysts forecast BMI stock price to rise
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 153.830
Low
157.00
Averages
214.86
High
243.00
Current: 153.830
Low
157.00
Averages
214.86
High
243.00
About BMI
Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, quality, control and other system solutions serving markets worldwide. Its offerings, marketed as BlueEdge, include a suite of tailorable solutions that connect water management technology, software and support services to deliver insights enabling the proactive management of water across the water cycle. Its solutions include measurement and control hardware, connectivity and communication, data visualization and software-delivered actionable insights, and ongoing support to optimize customers' operations. Its measurement and control hardware, instruments and sensors include product families, such as meters that measure the flow of water and other fluids, water quality monitoring solutions and high frequency pressure and acoustic leak detection hardware that provides real-time monitoring data. It offers a range of communication solutions including the ORION branded family of radio endpoints.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities Amid Market Volatility
- Rocket Lab's Growth Potential: Rocket Lab's stock has dropped 30%, yet its vertically integrated model and comprehensive space solutions provide immense growth potential across industries like defense, telecommunications, and space tourism, despite its next-gen rocket launch being delayed again until Q4 this year, which may impact operational performance.
- Revenue and Backlog Growth: In 2025, Rocket Lab's revenue and backlog grew by 38% and 73%, respectively, while its gross margin improved by over 7 percentage points; however, with a current market cap of $40 billion, investors should be cautious of the risks associated with its 62 times sales valuation.
- Badger Meter's Steady Performance: Badger Meter's stock has fallen 43%, but with 85% of its sales driven by replacement demand and net income and free cash flow growing by 18% and 30% annually over the past decade, it demonstrates strong growth potential in the water management solutions sector.
- Rapid Growth of Software Business: Although Badger Meter's price-to-free cash flow ratio has risen from the low 20s in 2019 to above 50 in 2024, its emerging software business has seen annual growth of 28% over the past five years, presenting investors with an opportunity at a more reasonable 26 times free cash flow valuation.
See More
Badger Meter Declares Quarterly Dividend and Increases Share Repurchase Authorization
- Quarterly Cash Dividend: Badger Meter has declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and payment scheduled for March 13, 2026, which is expected to enhance shareholder returns and boost market confidence.
- Increased Repurchase Authorization: The company is raising its share repurchase authorization by $75 million, combining it with the previously approved $75 million from November 2025, resulting in a total repurchase authorization of $150 million, reflecting the company's confidence in its stock value.
- Repurchase Progress: Under the expanded authorization, Badger Meter has repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, leaving $119.7 million available for future repurchases, indicating proactive capital management to enhance shareholder value.
- Future Outlook: Badger Meter anticipates achieving single-digit sales growth over the next five years, particularly as the PRASA project ramps up, demonstrating the company's growth potential and the effectiveness of its strategic planning.
See More
Badger Meter Declares Quarterly Dividend and Share Repurchase Plan
- Quarterly Dividend Announcement: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share for shareholders of record on February 27, 2026, payable on March 13, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million, effective through November 30, 2028, enhancing the company's capital management flexibility.
- Repurchase Execution Status: Under the expanded repurchase authorization, the company repurchased 205,000 shares for approximately $30.3 million in Q1 2026, with $119.7 million remaining available, indicating proactive capital structure management in response to market conditions.
- Forward-Looking Statement Risks: The company highlighted that forward-looking statements involve various risks and uncertainties, including market acceptance, supply chain risks, and legal compliance, underscoring challenges in technology development and market competition.
See More
Badger Meter Approves $75 Million Stock Buyback Increase
- Buyback Plan Expansion: Badger Meter's board has approved a $75 million increase to its stock buyback program, aimed at enhancing shareholder value and boosting market confidence, which is expected to have a positive impact on the company's stock price.
- Funding Source Analysis: The buyback will be supported by the company's existing cash flow and future earnings, indicating Badger Meter's confidence in its financial health while reflecting an optimistic outlook on future market performance.
- Market Reaction Expectations: Analysts generally believe that the increased buyback plan will help boost earnings per share, potentially attracting more investor attention and driving the stock price up in the short term.
- Strategic Significance: This move not only demonstrates the company's commitment to shareholder returns but may also strengthen Badger Meter's market position in a competitive environment, further solidifying its leadership in the industry.
See More
Badger Meter Declares Quarterly Dividend and Increases Share Repurchase Authorization
- Quarterly Dividend Declaration: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and a payment date of March 13, 2026, reflecting the company's commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million through November 30, 2028, indicating a proactive approach to capital management.
- Repurchase Execution: Under the expanded authorization, the company repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, with $119.7 million remaining available, demonstrating the company's ability to capitalize on market opportunities.
- Flexibility of Repurchase Program: The repurchase program allows the company to adjust the timing, frequency, and amount of share repurchases based on market conditions and capital allocation priorities, showcasing its adaptability in a dynamic market environment.
See More
BADGER METER INC - RAISES SHARE REPURCHASE AUTHORIZATION BY $75 MILLION
- Share Repurchase Authorization: Badger Meter has increased its share repurchase authorization by $75 million.
- Impact on Shareholders: This move is expected to benefit shareholders by potentially increasing the value of remaining shares.
See More
Investment Opportunities Amid Market Volatility
- Rocket Lab's Growth Potential: Rocket Lab's stock has dropped 30%, yet its vertically integrated model and comprehensive space solutions provide immense growth potential across industries like defense, telecommunications, and space tourism, despite its next-gen rocket launch being delayed again until Q4 this year, which may impact operational performance.
- Revenue and Backlog Growth: In 2025, Rocket Lab's revenue and backlog grew by 38% and 73%, respectively, while its gross margin improved by over 7 percentage points; however, with a current market cap of $40 billion, investors should be cautious of the risks associated with its 62 times sales valuation.
- Badger Meter's Steady Performance: Badger Meter's stock has fallen 43%, but with 85% of its sales driven by replacement demand and net income and free cash flow growing by 18% and 30% annually over the past decade, it demonstrates strong growth potential in the water management solutions sector.
- Rapid Growth of Software Business: Although Badger Meter's price-to-free cash flow ratio has risen from the low 20s in 2019 to above 50 in 2024, its emerging software business has seen annual growth of 28% over the past five years, presenting investors with an opportunity at a more reasonable 26 times free cash flow valuation.
See More
Badger Meter Declares Quarterly Dividend and Increases Share Repurchase Authorization
- Quarterly Cash Dividend: Badger Meter has declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and payment scheduled for March 13, 2026, which is expected to enhance shareholder returns and boost market confidence.
- Increased Repurchase Authorization: The company is raising its share repurchase authorization by $75 million, combining it with the previously approved $75 million from November 2025, resulting in a total repurchase authorization of $150 million, reflecting the company's confidence in its stock value.
- Repurchase Progress: Under the expanded authorization, Badger Meter has repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, leaving $119.7 million available for future repurchases, indicating proactive capital management to enhance shareholder value.
- Future Outlook: Badger Meter anticipates achieving single-digit sales growth over the next five years, particularly as the PRASA project ramps up, demonstrating the company's growth potential and the effectiveness of its strategic planning.
See More
Badger Meter Declares Quarterly Dividend and Share Repurchase Plan
- Quarterly Dividend Announcement: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share for shareholders of record on February 27, 2026, payable on March 13, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million, effective through November 30, 2028, enhancing the company's capital management flexibility.
- Repurchase Execution Status: Under the expanded repurchase authorization, the company repurchased 205,000 shares for approximately $30.3 million in Q1 2026, with $119.7 million remaining available, indicating proactive capital structure management in response to market conditions.
- Forward-Looking Statement Risks: The company highlighted that forward-looking statements involve various risks and uncertainties, including market acceptance, supply chain risks, and legal compliance, underscoring challenges in technology development and market competition.
See More
Badger Meter Approves $75 Million Stock Buyback Increase
- Buyback Plan Expansion: Badger Meter's board has approved a $75 million increase to its stock buyback program, aimed at enhancing shareholder value and boosting market confidence, which is expected to have a positive impact on the company's stock price.
- Funding Source Analysis: The buyback will be supported by the company's existing cash flow and future earnings, indicating Badger Meter's confidence in its financial health while reflecting an optimistic outlook on future market performance.
- Market Reaction Expectations: Analysts generally believe that the increased buyback plan will help boost earnings per share, potentially attracting more investor attention and driving the stock price up in the short term.
- Strategic Significance: This move not only demonstrates the company's commitment to shareholder returns but may also strengthen Badger Meter's market position in a competitive environment, further solidifying its leadership in the industry.
See More
Badger Meter Declares Quarterly Dividend and Increases Share Repurchase Authorization
- Quarterly Dividend Declaration: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and a payment date of March 13, 2026, reflecting the company's commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million through November 30, 2028, indicating a proactive approach to capital management.
- Repurchase Execution: Under the expanded authorization, the company repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, with $119.7 million remaining available, demonstrating the company's ability to capitalize on market opportunities.
- Flexibility of Repurchase Program: The repurchase program allows the company to adjust the timing, frequency, and amount of share repurchases based on market conditions and capital allocation priorities, showcasing its adaptability in a dynamic market environment.
See More
BADGER METER INC - RAISES SHARE REPURCHASE AUTHORIZATION BY $75 MILLION
- Share Repurchase Authorization: Badger Meter has increased its share repurchase authorization by $75 million.
- Impact on Shareholders: This move is expected to benefit shareholders by potentially increasing the value of remaining shares.
See More
