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Reasons to Include California Water Stock in Your Portfolio Right Away
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Key Takeaways
CWT's 2026 EPS estimate rose to $2.53, with a long-term earnings growth rate forecast of 8.8%.
CWT's $2.06B capital plan and recent acquisitions will expand operations and boost infrastructure.
CWT maintains a 2.55% dividend yield and outperforms industry growth with strong shareholder returns.
California Water Service Group’s (CWT - Free Report) consistent investments in infrastructure to better serve its customers, acquisitions and organic activities have played a critical role in expanding its operations. Given its strong growth, CWT makes for a solid investment option in the Zacks Utility Water Supply industry.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
CWT’s Growth Forecast & Surprise History
The Zacks Consensus Estimate for CWT’s 2026 earnings per share (EPS) has increased 0.8% to $2.53 in the past 60 days.
The Zacks Consensus Estimate for its 2026 revenues is pegged at $1.02 billion, which suggests a year-over-year increase of 5.7%.
The company’s long-term (three to five years) earnings growth rate is 8.8%. CWT delivered an average earnings surprise of 57.87% in the last four quarters.
Overview of CWT’s Debt Profile
Currently, CWT’s total debt to capital is 47.25%, better than the industry’s average of 56.04%.
California Water’s times interest earned ratio (TIE) at the end of the first quarter of 2025 was 3. The TIE ratio greater than 1 suggests that the company will be able to meet its interest payment obligations in the near term without difficulty.
CWT’s Return to Shareholders
California Water has increased shareholder value by continuously paying dividends. Currently, the company’s quarterly dividend is 30 cents per share, resulting in an annualized dividend of $1.20. CWT’s current dividend yield is 2.55%, better than the industry’s average of 2.42%.
CWT’s Structured Investment Approach
California Water consistently invests in upgrading and maintaining its infrastructure while expanding operations. The company's capital expenditure plan for the 2025-2027 period is $2.06 billion, with an investment aim of $660 million in 2025. The systematic investments to maintain, upgrade and expand existing pipelines will assist CWT in maintaining high-quality services and cater to the needs of its expanding customer base.
CWT's Key Acquisitions
California Water Service expanded its operations in the western United States through acquisitions. On May 29, 2025, California Water Service Group’s subsidiary, California Water Service (Cal Water), signed agreements with Casa Loma Water Company and Palm Mutual Water Company to acquire both systems’ water utility assets. Such valuable acquisitions are likely to expand the company’s customer base and operations.
CWT Stock Outperforms Industry
In the past month, CWT shares have risen 0.3% compared with the industry’s growth of 0.01%.
EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.03, which indicates a year-over-year improvement of 5.8%.
NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.88, which suggests a year-over-year rise of 7.4%.
CNP’s long-term earnings growth rate is 7.8%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which calls for a year-over-year improvement of 8%.
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Reasons to Include California Water Stock in Your Portfolio Right Away
Key Takeaways
California Water Service Group’s (CWT - Free Report) consistent investments in infrastructure to better serve its customers, acquisitions and organic activities have played a critical role in expanding its operations. Given its strong growth, CWT makes for a solid investment option in the Zacks Utility Water Supply industry.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
CWT’s Growth Forecast & Surprise History
The Zacks Consensus Estimate for CWT’s 2026 earnings per share (EPS) has increased 0.8% to $2.53 in the past 60 days.
The Zacks Consensus Estimate for its 2026 revenues is pegged at $1.02 billion, which suggests a year-over-year increase of 5.7%.
The company’s long-term (three to five years) earnings growth rate is 8.8%. CWT delivered an average earnings surprise of 57.87% in the last four quarters.
Overview of CWT’s Debt Profile
Currently, CWT’s total debt to capital is 47.25%, better than the industry’s average of 56.04%.
California Water’s times interest earned ratio (TIE) at the end of the first quarter of 2025 was 3. The TIE ratio greater than 1 suggests that the company will be able to meet its interest payment obligations in the near term without difficulty.
CWT’s Return to Shareholders
California Water has increased shareholder value by continuously paying dividends. Currently, the company’s quarterly dividend is 30 cents per share, resulting in an annualized dividend of $1.20. CWT’s current dividend yield is 2.55%, better than the industry’s average of 2.42%.
CWT’s Structured Investment Approach
California Water consistently invests in upgrading and maintaining its infrastructure while expanding operations. The company's capital expenditure plan for the 2025-2027 period is $2.06 billion, with an investment aim of $660 million in 2025. The systematic investments to maintain, upgrade and expand existing pipelines will assist CWT in maintaining high-quality services and cater to the needs of its expanding customer base.
CWT's Key Acquisitions
California Water Service expanded its operations in the western United States through acquisitions. On May 29, 2025, California Water Service Group’s subsidiary, California Water Service (Cal Water), signed agreements with Casa Loma Water Company and Palm Mutual Water Company to acquire both systems’ water utility assets. Such valuable acquisitions are likely to expand the company’s customer base and operations.
CWT Stock Outperforms Industry
In the past month, CWT shares have risen 0.3% compared with the industry’s growth of 0.01%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks related to the same sector are Evergy, Inc. (EVRG - Free Report) , NiSource Inc. (NI - Free Report) and CenterPoint Energy (CNP - 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.
EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.03, which indicates a year-over-year improvement of 5.8%.
NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.88, which suggests a year-over-year rise of 7.4%.
CNP’s long-term earnings growth rate is 7.8%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which calls for a year-over-year improvement of 8%.