The York Water Company’s ( YORW Quick Quote YORW - Free Report) ongoing investments in construction and improvement of infrastructure, strong fundamentals as well as upward estimate revisions make it a good investment choice. Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Growth Projections
The Zacks Consensus Estimate for 2020 earnings per share and revenues is pegged at $1.24 and $53.70 million, respectively, suggesting an increase of 11.71% and 4.11% each from the year-ago quarter’s reported figures.
The consensus mark for 2021 earnings and revenues is pegged at $1.28 and $55.25 million, respectively. The bottom and the top-line estimates indicate a respective 3.63% and 2.89% rise from the prior-year quarter’s reported numbers. Surprise History
York Water’s trailing four-quarter earnings surprise is 18.38%, on average.
In the past 12 months, the stock has rallied 22.7%, outperforming the
industry’s rise of 1%. Debt to Capital & Credit Rating
The company’s total debt to total capital is 42.66%, lower than the industry average of 51.15%. This indicates that it is efficiently managing operations through lesser utilization of debt than its peers. In April, Standard & Poor’s affirmed the company’s credit rating at A- with a stable outlook and adequate liquidity.
In 2019, York Water invested $18.4 million in routine items, dam improvements, and various replacements and repairs of infrastructure. Also, in the first six months of 2020, the company invested $9 million. For the second half of this year, the company plans to invest $12.6 million excluding expenditure for renovation or infrastructure upgrade. Investments in strengthening the existing infrastructure and the acquisition of new assets will expand its footprint and the customer base.
A few other top-ranked stocks in the same sector are Essential Utilities Inc. (
WTRG Quick Quote WTRG - Free Report) , Middlesex Water Company ( MSEX Quick Quote MSEX - Free Report) and Pampa Energia S.A. ( PAM Quick Quote PAM - Free Report) , all carrying the same Zacks Rank as York Water at present. Essential Utilities’ long-term earnings growth (three to five years) rate is pegged at 6.01%. Also, the company has a trailing four-quarter earnings surprise of 9.67%, on average. The Zacks Consensus Estimate for Middlesex Water Company’s 2020 earnings has moved 1.4% north over the past 60 days. It has a trailing four-quarter earnings surprise of 6.88%, on average. The long-term earnings growth rate for Pampa Energia S.A stands at 6.46%. Also, the company has a trailing four-quarter earnings surprise of 153.99%, on average. Zacks’ Single Best Pick to Double
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