WMS Should I Buy
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Advanced Drainage Systems Inc (WMS) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and long-term growth potential outweigh the current technical weakness and hedge fund selling activity. The lack of recent news or congress trading data does not detract from the overall positive outlook.
The stock is currently trading at $132.95, slightly below its pivot level of $136.673. The MACD is negative and contracting (-0.539), indicating bearish momentum, while the RSI is at 34.828, in the neutral zone. Moving averages are converging, suggesting no clear trend. Key support is at $132.058, and resistance is at $141.288.
Analysts have raised price targets significantly, with targets ranging from $198 to $215, citing strong Q3 performance, margin execution, and long-term growth potential.
Financials show strong YoY growth in net income (15.26%), EPS (14.42%), and gross margin (7.69%), indicating robust operational performance.
The company raised FY26 guidance, reflecting management's confidence in future growth.
Hedge funds are selling, with a 368.98% increase in selling activity over the last quarter.
Technical indicators show bearish momentum with no clear upward trend.
No recent news or congress trading data to provide additional confidence.
In Q3 2026, revenue increased by 0.41% YoY to $693.35M. Net income rose by 15.26% YoY to $93.63M, and EPS grew by 14.42% YoY to $1.19. Gross margin improved to 35.43%, up 7.69% YoY, reflecting strong operational efficiency.
Analysts are overwhelmingly positive on WMS, with multiple firms raising price targets to $198-$215 and maintaining Outperform or Buy ratings. Analysts cite strong Q3 performance, end-market outperformance, and long-term growth potential as key drivers of their optimism.
