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Reasons to Add SJW Group Stock to Your Portfolio Right Now

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SJW Group’s (SJW - Free Report) strategic investments to strengthen its existing infrastructure and expand operations are expected to further drive its performance. The company is also benefiting from its strategic water and wastewater system acquisitions. Given its growth opportunities, SJW Group makes for a solid investment option in the utility sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment option at the moment.

SJW’s Growth Projections & Surprise History

The Zacks Consensus Estimate for fourth-quarter 2024 earnings per share (EPS) has moved up 1.9% in the past 30 days to 55 cents.

The Zacks Consensus Estimate for 2024 revenues is pinned at $715.23 million, implying a year-over-year increase of 6.7%.

SJW’s long-term (three to five years) earnings growth rate is 6.07%. The company delivered an average earnings surprise of 4.3% for the trailing four quarters.

Debt Position of SJW

SJW Group’s total debt to capital is 57.1%, better than the sector’s average of 59.37%.

The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

SJW’s Dividend History

SJW has been consistently paying dividends and increasing its shareholders’ value. The CAGR for its dividend has exceeded 6% over the past five years. The company has paid a dividend for 80 consecutive years, with increases in the past 56 consecutive years. Currently, its quarterly dividend is 40 cents per share, resulting in an annualized dividend of $1.60. Its current dividend yield is 2.87%, better than the Zacks S&P 500 composite’s 1.19%. 

SJW’s Systematic Investments

SJW Group remains focused on investing in its operations and remaining actively engaged in its local communities. It has invested nearly $252 million year to date, or approximately 76% of $332 million budgeted in 2024. It plans to invest more than $1.6 billion over the next five years to build and maintain its water and wastewater operations.

SJW’s Stock Price Performance

In the past month, the stock has returned 2.2% compared with the industry’s 1.4% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same sector are Middlesex Water Company (MSEX - Free Report) , Avangrid and NiSource (NI - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for MSEX’s 2024 EPS is pegged at $2.34, implying a year-over-year improvement of 33%. The company delivered an average earnings surprise of 3.1% for the trailing four quarters.

AGR’s long-term earnings growth rate is 6%. The consensus estimate for the company’s 2024 EPS is pegged at $2.34, indicating a year-over-year improvement of 12%.

NI’s long-term earnings growth rate is 6.95%. The company delivered an average earnings surprise of 22.4% for the trailing four quarters.

 


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