Will Ashworth

Tue, Jun 24, 2025, 7:38 AM5 min read

Of the 100 stocks in Barchart’s Top 100 Stocks to Buy in Monday trading, nine were new entrants in the momentum-focused list.

One of the nine new entrants was Perma-Pipe International (PPIH), a Texas-based manufacturer of high-performance pipe systems used for district heating and cooling for multiple buildings in a neighborhood or district. It also provides PermAlert leak detection systems to identify leaks before they become a significant problem.

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The business operates in a competitive arena (heating and cooling), but it is up to the task. Growing quickly--Q1 2025 sales were 36.2% higher than a year earlier--the small-cap stock jumped into the top 100 yesterday in 57th place.

It’s on a roll. The question is whether it has enough momentum and staying power to grow from a $187 million small cap to a mid-cap of $2 billion or more.

Here’s my two cents on the subject.

There is no doubt that climate change is a real phenomenon, affecting everything in our world, from insurance coverage to travel delays, and all aspects in between.

The International Chamber of Commerce estimates that climate-related events over the past decade have cost the global economy over $2 trillion. Businesses that help alleviate some of the financial burden of climate change will benefit from this reality.

So, what are the benefits of this for Perma-Pipe? And is it sustainable? Before I try to answer that, it’s crucial to understand how it generates revenue.

The company has a hybrid sales model. It sells through a direct sales force in Canada, India, Egypt, and several countries in the Middle East. In the U.S., it employs both inside and outside sales managers who work with independent sales representatives to sell its products and services. Elsewhere, it uses an agent network to educate potential buyers.

Perma-Pipe has operating facilities in the U.S., Canada, Egypt, India, Saudi Arabia, and the United Arab Emirates. Given the customized nature of its products and services, having facilities near the projects it works on is vital to the success of the relationship.