Primo Water Corporation’s PRMW steady customer addition and organic growth are boosting its performance.
Let’s focus on the factors that make the provider of sustainable drinking water solutions, with a Zacks Rank #2 (Buy), a strong investment 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 2022 earnings per share and revenues is pegged at 68 cents and $2.23 billion, suggesting increases of 21.4% and 7.6%, respectively, from the year-ago reported figures.
The consensus mark for 2023 earnings and revenues is pegged at 83 cents per share and $2.34 billion, respectively. The bottom and top-line estimates suggest 21.7% and 4.9% year-over-year increases, respectively.
Surprise History & Dividend Yield
Primo Water’s trailing four-quarter earnings surprise is 7.9%, on average.
The company’s dividend yield is currently pegged at 1.81%, which is better than the Zacks S&P 500 composite’s yield of 1.67%.
Regular Investments
Primo Water consistently invests in upgrading and maintaining its existing infrastructure to provide reliable services 24x7 to its expanding customer base. In 2022, Primo Water invested nearly $200 million to strengthen its operation. It sets aside $40-$60 million per year to make acquisitions and expand its footprint. The company is expected to continue to make investments in 2023 to expand its operations.
Price Performance
Over the past six months, the stock has gained 16.5% compared with the industry’s growth of 7.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are ALLETE ALE, Edison International EIX and Atmos Energy ATO, each currently carrying a Zacks Rank #2.
The long-term (three-to five-year) earnings growth of ALLETE, Edison International and Atmos Energy is projected at 9.3%, 2.6% and 7.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings for ALLETE and Edison International has moved up 0.3% and 0.4%, respectively, in the past 60 days. The Zacks Consensus Estimate for Atmos Energy’s fiscal 2023 earnings has moved up 0.4% in the past 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners UpEdison International (EIX) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
Primo Water Corporation (PRMW) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
