Upcoming earnings event puts Select Water Solutions in focus

Select Water Solutions (WTTR) has set August 4, 2026 for the release of its second quarter results, followed by an investor conference call the next morning, putting fresh attention on the stock’s recent performance.

At a share price of $21.35, Select Water Solutions has seen strong momentum recently, with a 15.53% 30-day share price return and a 92.52% year to date share price return, alongside a 1-year total shareholder return of 123.59%.

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After a move like this, investors in Select Water Solutions are left weighing how much of the story is already captured in the share price and how much of the potential still sits in the current valuation.

Most Popular Narrative: 2.2% Undervalued

At a last close of $21.35 versus a narrative fair value of $21.83, Select Water Solutions is priced close to that narrative estimate, yet the underpinning story relies heavily on how its water infrastructure mix and earnings profile could evolve over time.

The company has secured a substantial and growing backlog of long-term, acreage-dedicated water infrastructure contracts in the Northern Delaware Basin, providing high predictability on revenue and cash flows over multiple years, with further upside as undedicated and ROFR acreage is converted, positioning Select to achieve significant Water Infrastructure revenue growth above $400 million annual exit run rate in 2026. This is likely to support sustainable top-line growth and improved earnings visibility.

Want to see what sits behind that water infrastructure ramp story? The fair value hinges on a specific revenue glide path, margin rebuild, and a rich earnings multiple that assumes those levers play out in tandem.

Result: Fair Value of $21.83 (UNDERVALUED)

However, the story around Select Water Solutions still hinges on sustained Permian contract wins and heavy capital spending, which could weigh on returns if project demand disappoints.

Another view on Select Water Solutions’ valuation

While the narrative fair value suggests Select Water Solutions is only 2.2% undervalued, the current P/E of 123x paints a very different picture compared with the US Energy Services industry at 27.5x, peers at 22x, and a fair ratio of 27.8x. This raises questions about how much optimism is already priced in.

To see how these earnings multiples stack up in more detail, including where the fair ratio sits versus current pricing, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution around Select Water Solutions feels familiar, consider taking a closer look while the details are fresh and review the data yourself to form your own view, including the 2 key rewards and 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.