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Here's Why You Should Add GWRS Stock to Your Portfolio Right Now

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Key Takeaways

  • Global Water Resources' 2025 EPS is expected to be 22 cents, and sales are expected to be $55.85 million.
  • GWRS maintains a strong current ratio of 1.09 and solid interest coverage of 2.3.
  • The company has acquired 23 systems since 2017, adding 9,889 connections and boosting scale.

Global Water Resources (GWRS - Free Report) continues to benefit from its regulated water, wastewater and recycled water utilities operations. Given its growth opportunities, GWRS 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 pick at the moment.

GWRS’ Growth Projections

The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at 22 cents. The consensus estimate for 2026 EPS stands at 28 cents, indicating a year-over-year increase of 25%. 

The Zacks Consensus Estimate for 2025 sales is pegged at $55.85 million, implying a year-over-year jump of 6%.

GWRS’ Solvency

Global Water Resources’ time-to-interest earned ratio at the end of the second quarter of 2025 was 2.3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

GWRS’ Liquidity

The company’s current ratio of 1.09 is better than the industry’s average of 0.9. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.

Dividend History of GWRS

Global Water Resources continues to increase shareholder value through dividend hikes. Currently, its quarterly dividend is 2.53 cents per share, resulting in an annualized dividend of 30.4 cents. Its current dividend yield is 2.83%, better than the Zacks S&P 500 composite's average of 1.09%.

GWRS’ Focus on M&A

Global Water Resources is recognized for its strong execution of Total Water Management, an integrated strategy for overseeing the entire water cycle. The company focuses on acquiring smaller water and wastewater systems in growth corridors to increase customer connections, and improve operational scale and efficiency. It has acquired 23 systems since 2017, which has helped the company add 9,889 new connections and expand its service area by 69.9 square miles.

GWRS’ Share Price Performance

In the past month, GWRS stock has returned 9.5% compared with the industry’s growth of 1.6%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Consolidated Water (CWCO - Free Report) , California Water Service Group (CWT - Free Report) and The York Water Company (YORW - Free Report) , each carrying 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 CWCO’s 2025 EPS is pinned at $1.13, indicating year-over-year growth of 0.9%. The company delivered an average earnings surprise of 40.1% in the last four quarters. 

CWT’s long-term (three to five years) earnings growth rate is 8.78%. The company delivered an average earnings surprise of 51.6% for the past four quarters. 

The Zacks Consensus Estimate for YORW’s 2025 sales is pegged at $78 million, calling for year-over-year growth of 4.1%. The Zacks Consensus Estimate for 2025 EPS is pinned at $1.35, which suggests a year-over-year decline of 4.9%.

 

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