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The Zacks Consensus Estimate for 2021 earnings per share and revenues is pegged at 64 cents and $2.08 billion, suggesting an increase of 16.4% and 6.4%, respectively, from the year-ago reported figures.
The consensus mark for 2022 earnings and revenues is pegged at 70 cents per share and $2.18 billion, respectively. The bottom- and top-line estimates suggest a 9.4% and 5% year-over-year increase, respectively.
Surprise History
Primo Water’s trailing four-quarter earnings surprise is 18.7%, on average.
Dividend Yield & Share Buyback Plan
Its dividend yield is currently pegged at 1.47%, which is better than the Zacks S&P 500 composite’s yield of 1.42%.
During the second quarter, the company repurchased 800,000 common shares for $13 million under the previously announced share repurchase program of up to $50 million of its outstanding common shares. The systematic buyback of shares will increase shareholders value.
Regular Investments
Primo Water makes consistent investments to upgrade and maintain the existing infrastructure for providing 24x7 reliable services to the expanding customer base. In 2021, the company aims to invest $135 million to strengthen its operation. The company sets aside $40-$60 million per year to make acquisitions and expand its footprint.
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 investments. American Water has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.
Price Performance
Over the past 12 months, the stock has gained 14.1% compared with the industry’s growth of 10.8%.
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 American States Water Company (AWR - 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 1.1% in the past 60 days.
American States Water delivered an average earnings surprise of 4.4% in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved up 0.4% in the past 60 days.
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Reasons to Add Primo Water (PRMW) to Your Portfolio Now
Primo Water Corporation’s (PRMW - Free Report) steady customer addition and organic growth are boosting its performance.
Let’s focus on the factors that make this provider of sustainable drinking water solutions having a Zacks Rank #2 (Buy) 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 64 cents and $2.08 billion, suggesting an increase of 16.4% and 6.4%, respectively, from the year-ago reported figures.
The consensus mark for 2022 earnings and revenues is pegged at 70 cents per share and $2.18 billion, respectively. The bottom- and top-line estimates suggest a 9.4% and 5% year-over-year increase, respectively.
Surprise History
Primo Water’s trailing four-quarter earnings surprise is 18.7%, on average.
Dividend Yield & Share Buyback Plan
Its dividend yield is currently pegged at 1.47%, which is better than the Zacks S&P 500 composite’s yield of 1.42%.
During the second quarter, the company repurchased 800,000 common shares for $13 million under the previously announced share repurchase program of up to $50 million of its outstanding common shares. The systematic buyback of shares will increase shareholders value.
Regular Investments
Primo Water makes consistent investments to upgrade and maintain the existing infrastructure for providing 24x7 reliable services to the expanding customer base. In 2021, the company aims to invest $135 million to strengthen its operation. The company sets aside $40-$60 million per year to make acquisitions and expand its footprint.
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 investments. American Water has plans to invest $10.4 billion in the 2021-2025 time period and $22-$25 billion in the next decade.
Price Performance
Over the past 12 months, the stock has gained 14.1% compared with the industry’s growth of 10.8%.
Other Stocks to Consider
Other top-ranked stocks in the same sector include California Water Service Group (CWT - Free Report) and American States Water Company (AWR - 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 1.1% in the past 60 days.
American States Water delivered an average earnings surprise of 4.4% in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved up 0.4% in the past 60 days.