ADVANCED DRAINAGE SYSTEMS (WMS) Stock: Buy, Sell, or Hold?

WMS - ADVANCED DRAINAGE SYSTEMS, INC.

PLASTICS FOAM PRODUCTS
$130.40
-0.52 (-0.40%) ▼
5d: +1.72%
30d: +1.21%
90d: -8.93%
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LOW Confidence
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Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Nov 05, 2026 12d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 MIXED SIGNALS: WMS shows conflicting indicators. Wait for confirmation before entering.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$200.62
Based on 6.7% avg growth
INTRINSIC VALUE TODAY
$124.57
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 21.7x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: WMS is currently trading at $130.40, which is considered extended relative to its 30-day fair value range of $126.03 to $130.09. From a valuation perspective, the stock is trading at a discount (Forward PE: 19.5) compared to its historical average (21.7). Remarkably, the market is currently pricing in an annual earnings decline of 3.5% over the next few years. This pessimistic expectation contrasts with the company's recent 18.8% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, WMS is in a strong downtrend. The price is approaching resistance at $131.57. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: The stock scores a mixed 48/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $181.73 (+39.4%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $126.03 - $130.09
Company Quality Score 47/100 (HOLD)
Options IV Signal 41th percentile (NORMAL)
Volume Confirmation HIGH
Confidence Score 54.6%

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All Signals

  • BEARISH: Price extended above range
  • NEUTRAL: Options fairly priced (IV 41th percentile)
  • NEUTRAL: Mixed technical signals (48/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 39.4% below Wall St target ($181.73)
  • WARNING: Composite score 47/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $126.03 - $130.09
Current vs Trading Range EXTENDED
Expected Move (7 Days) ±$8.96 (6.9%)

Support & Resistance Levels

Support Level $122.84
Resistance Level $131.57
Current Trend Strong Downtrend
Technical data as of Oct 23, 2026

Fundamental Context

Forward P/E (Next Year Est.) 19.49
Wall Street Target $181.73 (+39.4%)
Revenue Growth (YoY) 20.6%
Earnings Growth (YoY) 18.8%
Profit Margin 14.0%
Valuation Discount vs History -3.5% cheaper
PE vs Historical 19.5 vs 21.7 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -3.5% (market-implied from PE analysis)
1-Year Target $125.84 (-4%)
2-Year Target $121.43 (-7%)
3-Year Target $117.18 (-10%)
3-Yr Target (if PE normalizes) (PE: 19→22) $130.46 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 19.9, Growth: 9.4%) $173.74 (+33%)
Base: (SPY PE: 19.5, Growth: 9.4%) $170.52 (+31%)
Bear: (PE: 16.6, Growth: 9.4%) $144.94 (+11%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (22x PE), but valuation improves significantly next year (19x PE) as earnings recover.
Trailing PE: 22.15 | Current EPS (TTM): $5.87
Bull Case $162.98 (+25%)
Analyst growth 14.0%, PE expands to 24.4
Base Case $148.17 (+13%)
Market implied 14.0%, PE stable at 22.2
Bear Case $88.40 (-33%)
Severe decline -20.0%, PE contracts to 18.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 19.5 to 21.7
Stabilization Target: $145.18 (+11.3%)
PE Expansion Potential: +11.3%
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Last updated: October 23, 2026 5:33 PM ET
Data refreshes hourly during market hours. Next update: 6:33 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
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Buys
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Sells
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NEUTRAL

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