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Here's Why You Should Add The York Water Company (YORW) Now

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The York Water Company’s YORW solid investments to build and improve its communities’ infrastructure as well as steady dividend payment bode well for long-term growth.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock an appropriate pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2019 earnings per share is pegged at $1.15 on $52-million revenues. The bottom and the top lines are expected to grow year over year, suggesting an increase of 10.58% and 7.36%, respectively.

The consensus mark for 2020 earnings is pegged at $1.19 on revenues of $54 million. While the bottom line suggests a 3.48% year-over-year increase, the top line calls for a 3.85% improvement.

Price Movement & Surprise History


 

In the year-to-date period, the stock has gained 44% compared with the industry’s growth of 40.3%. The York Water’s average four-quarter positive earnings surprise is 2.28%.

Capital Investments & Return on Equity (ROE)

In the first nine months of 2019, the company invested $13,284 in construction expenditures for routine items and dam improvements, as well as various replacements and improvements to infrastructure, and $2,088 for the acquisition of a wastewater system. It projects construction expenditures of $4,500 (excluding any potential acquisitions not yet approved) for the remainder of this year.

The ROE is a measure of a company’s efficiency in utilizing shareholders’ funds. The company’s ROE for the trailing 12 months is 11.43%, higher than the industry’s 9%.

Steady Dividend Payment

The board of directors has announced a quarterly dividend of 18.02 cents, payable on Jan 15, 2020 to shareholders on record as of Dec 31, 2019. This is the 596th uninterrupted dividend payout and the 23rd consecutive year of dividend increase.

Other Stocks to Consider

Other top-ranked stocks in the sector include The AES Corporation (AES - Free Report) , MDU Resources Group, Inc. MDU and NorthWestern Corporation NWE. While AES Corporation sports a Zacks Rank #1 (Strong Buy), FirstEnergy and Northwestern carry a Zacks Rank of 2, at present.

AES Corporation, MDU Resources and NorthWestern delivered average positive earnings surprise of 4.68%, 2.79% and 10.49%, respectively, over the last four quarters.

The long-term earnings growth rate for AES Corporation, MDU Resources and NorthWestern is pegged at 9.10%, 7.10% and 2.80%, respectively.

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