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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>The WTR Consumer Stock Index outperformed the S&amp;P Small Cap 600 once again in August, increasing 5.2% versus a 1.7% gain in the broader index.</li><li>The increase in our Consumer Stock Index was primarily due to a 3.6% increase in its prospective EPS, coupled with a modest 0.27x expansion in its 12-month prospective P/E ratio to 16.8x.</li><li>For the S&amp;P Small Cap 600, the 1.7% gain in the index was due to a 0.16x gain in the prospective P/E ratio to 16.3x, coupled with a 0.7% increase in prospective EPS.</li></ul>

The WTR Consumer Stock Index outperformed the S&amp;P Small Cap 600 once again in August, increasing 5.2% versus a 1.7% gain in the broader index.The increase in our Consumer Stock Index was primarily due to a 3.6% increase in its prospective EPS, coupled with a modest 0.27x expansion in its 12-month prospective P/E ratio to 16.8x.For the S&amp;P Small Cap 600, the 1.7% gain in the index was due to a 0.16x gain in the prospective P/E ratio to 16.3x, coupled with a 0.7% increase in prospective EPS.

WTR Consumer Stock Index Continues to Outperform the S&P Small Cap 600 - September 12, 2025

United States

The Standard & Poor's Smallcap 600 Index is a capitalization-weighted index that measures the performance of selected U.S. stocks with a small market capitalization. The index was developed with a base value of 100 as of December31, 1993.

S&P Small Cap 600 Index ( SML INDEX)

WTR Consumer Stock Index Continues to Outperform the S&P Small Cap 600 - September 12, 2025

The WTR Consumer Stock Index outperformed the S&P Small Cap 600 once again in August, increasing 5.2% versus a 1.7% gain in the broader index.

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