On Sep 21, Zacks Investment Research upgraded
Connecticut Water Service Inc.
) to a Zacks Rank #1 (Strong Buy).
AMER STATES WTR (AWR): Free Stock Analysis
CONN WATER SVC (CTWS): Free Stock Analysis
CONSOLTD WATER (CWCO): Free Stock Analysis
SJW CORP (SJW): Free Stock Analysis Report
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Why the Upgrade?
Connecticut Water Service Inc. has witnessed rising earnings
estimates on the back of solid second quarter results. The water
utility has delivered positive earnings surprises in 3 of the
last 4 quarters with an average beat of 6.61%. Investors reacted
positively with the share price increasing 7.4% from the second
quarter release, closing at $32 yesterday.
The two-year rate reduction approval received by Connecticut
Water Service's subsidiary and the introduction of Revenue
Adjustment Mechanism ('RAM') are likely to benefit the company.
Effective from April 2014, these regulatory decisions will help
CTWS to retain customers and engage in service reliability
The financial flexibility and strong performance have enabled the
company to pay regular dividends and increase the annual dividend
rate in each of the last 44 years, indeed making the stock
attractive. Another water utility,
American States Water Company
) has been distributing dividends for the last 82 years.
The Zacks Consensus Estimate for 2013 increased 8.8% in the last
60 days to $1.60 per share, which reflects year-over-year growth
of 12.39%. For 2014, the Zacks Consensus Estimate increased 9.6%
in the last 60 days to $1.71 per share, which reflects
year-over-year growth of 7.02%. The long-term earnings growth of
the company is presently pegged at 5.00% on the back of sales
growth of 12.16%.
Other Stocks to Consider
Besides Connecticut Water, a few other water utilities are also
performing well and have a favorable Zacks Rank. The stocks worth
Consolidated Water Co. Ltd.
). SJW Corp. carries a Zacks Rank # 2 (Buy) while Consolidated
Water has a Zacks Rank #1 (Strong Buy).