Research from Water Tower Research, Water Tower Research

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.

Research from Water Tower Research

Equity Research Firm

Thematic (Sector/Industry)

United states Consumer staples / Thematic (Sector/Industry)

<ul><li>The WTR Consumer Index underperformed the S&amp;P SmallCap 600 in 2025, declining 10.6% versus an increase of 4.2% for the broader index. </li><li>The 4.6% increase in prospective earnings for our index was more than offset by a 2.6x contraction in its prospective P/E ratio to 15.5x from 18.1x at the beginning of the year.</li><li>Conversely, prospective earnings for the S&amp;P SmallCap 600 declined 2.5% in 2025, but that was more than offset by a 1.1x expansion of its prospective P/E ratio to 16.7x from 15.6x at the beginning of the year.</li></ul>

The WTR Consumer Index underperformed the S&amp;P SmallCap 600 in 2025, declining 10.6% versus an increase of 4.2% for the broader index. The 4.6% increase in prospective earnings for our index was more than offset by a 2.6x contraction in its prospective P/E ratio to 15.5x from 18.1x at the beginning of the year.Conversely, prospective earnings for the S&amp;P SmallCap 600 declined 2.5% in 2025, but that was more than offset by a 1.1x expansion of its prospective P/E ratio to 16.7x from 15.6x at the beginning of the year.

Consumer Monthly : WTR Consumer Index Lags Broader Market in 2025 - 12 January 2026