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Reasons to Add American States Water (AWR) to Your Portfolio
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American States Water Co. (AWR - Free Report) is a utility company providing water, wastewater and electricity services in the United States.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for AWR’s 2023 earnings per share (EPS) is pegged at $2.96, increasing 0.3% in the past 60 days. The Zacks Consensus Estimate for AWR’s 2024 EPS is pegged at $2.96, increasing 1.02% in the past 60 days.
The consensus estimate for current-year sales stands at $603 million, indicating year-over-year growth of 22.7%.
AWR’s long-term (three- to five-year) earnings growth is pegged at 6.3%.
Dividend History
The company has been consistently paying dividends to its shareholders. American States Water raised its dividend by 8.2% in August 2023, taking the quarterly figure to 43 cents, resulting in an annual payout of $1.72 per share. This is the 349th consecutive dividend to be paid by the company to its shareholders.
AWR’s current dividend yield is 2.17%, better than the Zacks S&P 500 Composite’s 1.76%.
Liquidity
American States Water has a current ratio of 1.20, better than the industry’s average of 0.86. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Return on Equity (ROE)
ROE indicates how efficiently a company utilizes its funds to generate higher returns. AWR’s ROE is currently pegged at 13.1%, higher than the industry’s average of 10.3%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
In the past three years, shares of AWR have surged by 1.1% against the industry’s 8.9% decline.
Consolidated Water’s long-term (three-to five-year) earnings growth rate is 8%. The Zacks Consensus Estimate for 2023 EPS is pegged at $1.46, implying a year-over-year improvement of 170.4%.
The Zacks Consensus Estimate for SJW’s 2023 EPS is pinned at $2.47, implying a year-over-year improvement of 2.1%. SJW’s current dividend yield is 2.52%.
California Water Service Group’s Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $1.91 and $2.17, respectively. Its 2023 and 2024 estimates increased by 3.2% and 2.8% year-over-year, respectively, in the past 60 days. CWT’s current dividend yield is 2.15%.
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Reasons to Add American States Water (AWR) to Your Portfolio
American States Water Co. (AWR - Free Report) is a utility company providing water, wastewater and electricity services in the United States.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for AWR’s 2023 earnings per share (EPS) is pegged at $2.96, increasing 0.3% in the past 60 days. The Zacks Consensus Estimate for AWR’s 2024 EPS is pegged at $2.96, increasing 1.02% in the past 60 days.
The consensus estimate for current-year sales stands at $603 million, indicating year-over-year growth of 22.7%.
AWR’s long-term (three- to five-year) earnings growth is pegged at 6.3%.
Dividend History
The company has been consistently paying dividends to its shareholders. American States Water raised its dividend by 8.2% in August 2023, taking the quarterly figure to 43 cents, resulting in an annual payout of $1.72 per share. This is the 349th consecutive dividend to be paid by the company to its shareholders.
AWR’s current dividend yield is 2.17%, better than the Zacks S&P 500 Composite’s 1.76%.
Liquidity
American States Water has a current ratio of 1.20, better than the industry’s average of 0.86. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Return on Equity (ROE)
ROE indicates how efficiently a company utilizes its funds to generate higher returns. AWR’s ROE is currently pegged at 13.1%, higher than the industry’s average of 10.3%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
In the past three years, shares of AWR have surged by 1.1% against the industry’s 8.9% decline.
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Other Stocks to Consider
A few other top-ranked stocks in the same industry are Consolidated Water Co. Ltd. (CWCO - Free Report) , SJW Group (SJW - Free Report) and California Water Service Group (CWT - Free Report) . CWCO sports a Zacks Rank of #1 (Strong Buy) and SJW and CWT each carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated Water’s long-term (three-to five-year) earnings growth rate is 8%. The Zacks Consensus Estimate for 2023 EPS is pegged at $1.46, implying a year-over-year improvement of 170.4%.
The Zacks Consensus Estimate for SJW’s 2023 EPS is pinned at $2.47, implying a year-over-year improvement of 2.1%. SJW’s current dividend yield is 2.52%.
California Water Service Group’s Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $1.91 and $2.17, respectively. Its 2023 and 2024 estimates increased by 3.2% and 2.8% year-over-year, respectively, in the past 60 days. CWT’s current dividend yield is 2.15%.