The York Water Company’s YORW ongoing investments in construction and improvement of infrastructure, strong fundamentals as well as upward estimate revisions make it a good investment choice.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2020 earnings per share and revenues is pegged at $1.24 and $53.70 million, respectively, suggesting an increase of 11.71% and 4.11% each from the year-ago quarter’s reported figures.
The consensus mark for 2021 earnings and revenues is pegged at $1.28 and $55.25 million, respectively. The bottom and the top-line estimates indicate a respective 3.63% and 2.89% rise from the prior-year quarter’s reported numbers.
York Water’s trailing four-quarter earnings surprise is 18.38%, on average.
In the past 12 months, the stock has rallied 22.7%, outperforming the industry’s rise of 1%.
Debt to Capital & Credit Rating
The company’s total debt to total capital is 42.66%, lower than the industry average of 51.15%. This indicates that it is efficiently managing operations through lesser utilization of debt than its peers. In April, Standard & Poor’s affirmed the company’s credit rating at A- with a stable outlook and adequate liquidity.
In 2019, York Water invested $18.4 million in routine items, dam improvements, and various replacements and repairs of infrastructure. Also, in the first six months of 2020, the company invested $9 million. For the second half of this year, the company plans to invest $12.6 million excluding expenditure for renovation or infrastructure upgrade. Investments in strengthening the existing infrastructure and the acquisition of new assets will expand its footprint and the customer base.
A few other top-ranked stocks in the same sector are Essential Utilities Inc. WTRG, Middlesex Water Company MSEX and Pampa Energia S.A. PAM, all carrying the same Zacks Rank as York Water at present.
Essential Utilities’ long-term earnings growth (three to five years) rate is pegged at 6.01%. Also, the company has a trailing four-quarter earnings surprise of 9.67%, on average.
The Zacks Consensus Estimate for Middlesex Water Company’s 2020 earnings has moved 1.4% north over the past 60 days. It has a trailing four-quarter earnings surprise of 6.88%, on average.
The long-term earnings growth rate for Pampa Energia S.A stands at 6.46%. Also, the company has a trailing four-quarter earnings surprise of 153.99%, on average.
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Pampa Energia S.A. (PAM): Free Stock Analysis Report
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