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Reasons to Add SJW Group (SJW) to Your Portfolio Now
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SJW Group’s (SJW - Free Report) strategic investments to strengthen its existing infrastructure and expand operations are expected to drive its performance. The company’s strategic acquisitions of water and wastewater systems will further expand its operations and position SJW Group as a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2023 earnings per share (EPS) remained unchanged at $2.47 in the past 60 days and its 2024 earnings estimate of $2.71 moved up by 1.1% in the same time frame.
The Zacks Consensus Estimate for 2023 and 2024 revenues were pinned at $643.1 million and $662.28 million, respectively. Its total revenues reflect a year-over-year increase of 3.6% and 2.98% in 2023 and 2024, respectively.
The company delivered an average earnings surprise of 21% in the last four quarters.
Systematic Investments
SJW Group remains focused on investing in its operations and continues to actively engage in its local communities. It plans to invest more than $1.6 billion over the next five years to build and maintain its water and wastewater infrastructure.
During the first six months of 2023, SJW invested $115.7 million in infrastructure and water supply, which is approximately 45% of $255 million budgeted for 2023. The company is on course to meet its 2023 capital expenditure guidance and continues to make further investments to fortify its operations.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, SJW Group’s ROE is 7.89%, higher than the sector’s average of 6.05%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility sector.
Dividend Growth
SJW has been consistently paying dividends and increasing its shareholders’ value. In July 2023, its board of directors approved a quarterly dividend of 38 cents per share, resulting in an annualized dividend of $1.52 per share. Its current dividend yield is 2.45%, better than its industry’s yield of 2.14%.
Price Performance
In the last year, the stock returned 7.6% compared with the industry’s growth of 4%.
AWK’s long-term (three- to five-year) earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.80 per share, reflecting an increase of 0.6% in the past 60 days.
AWR’s long-term earnings growth is 6.3%. The Zacks Consensus Estimate for 2023 earnings is pinned at $2.96 per share, reflecting an increase of 0.3% in the past 60 days.
CWCO’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for 2023 earnings is pegged at $1.46 per share, reflecting an increase of nearly 49% in the past 60 days.
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Reasons to Add SJW Group (SJW) to Your Portfolio Now
SJW Group’s (SJW - Free Report) strategic investments to strengthen its existing infrastructure and expand operations are expected to drive its performance. The company’s strategic acquisitions of water and wastewater systems will further expand its operations and position SJW Group as a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2023 earnings per share (EPS) remained unchanged at $2.47 in the past 60 days and its 2024 earnings estimate of $2.71 moved up by 1.1% in the same time frame.
The Zacks Consensus Estimate for 2023 and 2024 revenues were pinned at $643.1 million and $662.28 million, respectively. Its total revenues reflect a year-over-year increase of 3.6% and 2.98% in 2023 and 2024, respectively.
The company delivered an average earnings surprise of 21% in the last four quarters.
Systematic Investments
SJW Group remains focused on investing in its operations and continues to actively engage in its local communities. It plans to invest more than $1.6 billion over the next five years to build and maintain its water and wastewater infrastructure.
During the first six months of 2023, SJW invested $115.7 million in infrastructure and water supply, which is approximately 45% of $255 million budgeted for 2023. The company is on course to meet its 2023 capital expenditure guidance and continues to make further investments to fortify its operations.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, SJW Group’s ROE is 7.89%, higher than the sector’s average of 6.05%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility sector.
Dividend Growth
SJW has been consistently paying dividends and increasing its shareholders’ value. In July 2023, its board of directors approved a quarterly dividend of 38 cents per share, resulting in an annualized dividend of $1.52 per share. Its current dividend yield is 2.45%, better than its industry’s yield of 2.14%.
Price Performance
In the last year, the stock returned 7.6% compared with the industry’s growth of 4%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are American Water Works Company (AWK - Free Report) , American States Water Company (AWR - Free Report) , each carrying a Zacks Rank #2 and Consolidated Water (CWCO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AWK’s long-term (three- to five-year) earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.80 per share, reflecting an increase of 0.6% in the past 60 days.
AWR’s long-term earnings growth is 6.3%. The Zacks Consensus Estimate for 2023 earnings is pinned at $2.96 per share, reflecting an increase of 0.3% in the past 60 days.
CWCO’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for 2023 earnings is pegged at $1.46 per share, reflecting an increase of nearly 49% in the past 60 days.