Back to top

Analyst Blog

Connecticut Water Service, Inc. (CTWS - Snapshot Report) has announced its full-year 2014 capital spending guidance. The board of directors of the company has approved of a total investment of $45.6 million under its capital spending program for 2014.

Per the plan, Connecticut Water will allocate $37.8 million for its regulated utility subsidiary, The Connecticut Water Company and the rest will be utilized for operations in the state of Maine.

In Connecticut, the company will be investing $15 million under the Water Infrastructure and Conservation Adjustment Program to replace existing pipeline.

Connecticut Water expects to legally complete the merger of Biddeford & Saco Water Company with its unit The Maine Water Company (“Maine Water”) in 2013. The company plans to allot $2.7 million for changing pipeline and infrastructure in Maine through the Water Infrastructure Surcharge.

We note that the company continues to invest substantially to improve its existing infrastructure. In the last six months, the company replaced its ageing water main in Enfield and Canton to improve system reliability and water flows.

Consequently, Connecticut Water continues to increase its capital spending level. In 2012, the company’s capital expenditure was $24.7 million. During the first nine months of 2013, the company invested $22.7 million and intends to deploy a total of $31.3 million in 2013. We believe a continuous rise in capital spending is primarily due to higher investment in infrastructure improvement activities.

This infrastructure upgrade program will enable Connecticut Water to provide uninterrupted services to its customers while strengthening system competence. These factors will subsequently improve reliability, consumer confidence, public safety and also maintain the state as well as federal water quality regulations.

Clinton, Conn.-based Connecticut Water currently has a Zacks Rank #2 (Buy). Other stocks from the industry that are presently performing well include Middlesex Water Co. (MSEX - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and American Water Works Company, Inc. (AWK - Snapshot Report) and California Water Service Group (CWT - Snapshot Report), each with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%