Ready to make some winning moves in the class stock market game competition? Well, hold onto your hats because we’ve got an exciting stock pick for you: Badger Meter (BMI)!

Shares of Badger Meter just soared 12% after knocking it out of the park with their Q1 2024 earnings report. They didn’t just meet expectations—they beat them with a stick! Analysts were expecting earnings of $0.82 per share on sales of $182.3 million, but Badger blew those numbers out of the water. Their earnings came in at a jaw-dropping $0.99 per share, with sales hitting $196.3 million.

Now, let’s break down those impressive numbers. Badger Meter scored wins across the board, with sales growing 23% year over year, their operating profit margin expanding by 290 basis points to 18.6%, and net income shooting up by a whopping 50%! CEO Kenneth Bockhorst attributed these exceptional results to both “robust customer demand” and “operating execution.”

But here’s the real kicker: Sales growth among water utility customers, Badger Meter’s bread and butter, was through the roof, up 29%! This suggests that America’s long-awaited water infrastructure projects are finally gaining momentum.

So, is Badger Meter stock a buy in 2024? Well, it’s a bit of a mixed bag. CEO Bockhorst warns that the company might face “more difficult prior-year comparisons” as the year goes on. But at the same time, he acknowledges the “resilient macro trend” in the water industry that should continue to drive sales and earnings growth.

Now, here’s where the game-winning strategy comes in: momentum trading. Sure, Badger Meter’s 50% Q1 earnings growth is impressive, but keep in mind that the stock is trading at a hefty price-to-earnings ratio of 48. That means the stock’s price might already reflect the current growth trajectory. So, while momentum trading can score big wins in the short term, it’s not necessarily the best strategy for long-term investing.

Remember, in the world of investing, there’s a difference between short-term trading and long-term investing. While momentum trading can help you win the stock market game, it’s important to also consider the risks and rewards of long-term investing. So, buckle up and get ready to make some winning moves with Badger Meter!