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Reasons to Add Middlesex Water (MSEX) to Your Portfolio Now

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Middlesex Water Company’s (MSEX - Free Report) steady capital investment, customer additions and organic growth are boosting its performance.

Let’s focus on the factors that make this 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 2021 earnings per share and revenues is pegged at $2.27 and $146 million, suggesting an increase of 4.1% and 3.1%, respectively, from the year-ago reported figures.

The consensus mark for 2022 earnings and revenues is pegged at $2.5 per share and $153 million, respectively. The bottom- and top-line estimates suggest a 10.1% and 4.8% year-over-year increase, respectively.

Surprise History & Dividend Yield

Middlesex Water’s trailing four-quarter earnings surprise is 0.5%, on average.

Courtesy of its steady performance, management has been able to increase dividend for 48 consecutive years. Its dividend yield is currently pegged at 1.01%.

Regular Investments

Middlesex Water makes consistent investments to upgrade and maintain the existing infrastructure for providing 24x7 reliable services to the expanding customer base. The company has plans to invest $314 million during the 2021-2023 time period to strengthen its water and wastewater infrastructure as well as provide services to customers in a safe, reliable, and efficient manner.

Another water utility, American Water Works (AWK - Free Report) is also very active in upgrading its water and wastewater infrastructure as well as making regular investment. American Water has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.

Return on Equity (ROE)

ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. Middlesex Water’s ROE is currently pegged at 11.17%, better than the industry average of 10.58%, which indicates that the company is utilizing its funds more efficiently than peers.

Price Performance

Over the past six months, the stock has gained 30.6% compared with the industry’s growth of 5.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks in the same sector include California Water Service Group (CWT - Free Report) and Black Hills Corporation (BKH - Free Report) , each currently holding a Zacks Rank #2 (Buy).

California Water Service delivered an average earnings surprise of 15.4% in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved up 1.7% in the past 30 days.

Long-term (three to five years) earnings growth of Black Hills is currently pegged at 5.09%. The Zacks Consensus Estimate for 2021 earnings has moved up 0.3% in the past 30 days.