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York Water (YORW) Surges 5%: Is This an Indication of Further Gains?

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York Water (YORW - Free Report) shares rallied 5% in the last trading session to close at $51.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% gain over the past four weeks.

The York Water Company’s fourth quarter earnings per share and total revenues were better than expected. The company is gaining from higher per capita residential consumption and growth in the customer base. Strategic acquisitions are also boosting performance of the company.

York Water expects to invest nearly $36 million in 2021 and $40 million in 2022 for the maintenance and betterment of existing dams, pipes, storage tanks and other facilities. Also, part of these investments will be utilized for system expansion.

Price and Consensus

Price Consensus Chart for YORW

This purifying and distribution company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -3.2%. Revenues are expected to be $13 million, up 0.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For York Water, the consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on YORW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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