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What: Shares of water safety and flow control engineer Watts Water Technologies
So what: Third-quarter earnings of $0.63 per share thrashed Street targets by a whopping 40%, partly thanks to currency effects but mostly through good old organic growth. A modest buyback program also added $0.01 per share to the bottom line.
Now what: Watts pulled off a remarkable performance given the murky economy and rock-bottom construction market. "The latest estimates we look at don't see a recovery in either market until late 2012 or early 2013," said CEO David Coghlan. He also noted that his stock trades at a 25% discount to industry peers such as Flowserve
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