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WEC Energy Group, Inc. (WEC) - free report >>
American Water Works Company, Inc. (AWK) - free report >>
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Reasons to Add Primo Water (PRMW) to Your Portfolio Now
Primo Water Corporation’s (PRMW - Free Report) 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 69 cents and $2.22 billion, suggesting increases of 23.2% and 7.2%, respectively, from the year-ago reported figures.
The consensus mark for 2023 earnings and revenues is pegged at 81 cents per share and $2.32 billion, respectively. The bottom and top-line estimates suggest 17.8% and 4.6% year-over-year increases, respectively.
Surprise History & Dividend Yield
Primo Water’s trailing four-quarter earnings surprise is 18.7%, on average.
The company’s dividend yield is currently pegged at 2.13%, which is better than the Zacks S&P 500 composite’s yield of 1.68%.
Regular Investments
Primo Water makes consistent investments to upgrade and maintain its existing infrastructure to provide 24x7 reliable services to the expanding customer base. In 2022, the company aims to invest $200 million to strengthen its operation. It sets aside $40-$60 million per year to make acquisitions and expand its footprint.
Another water utility, American Water Works (AWK - Free Report) , is active in upgrading its water and wastewater infrastructure, as well as making regular investments. American Water plans to invest $13-$14 billion in the 2021-2025 period and $28-$32 billion in the next decade.
Price Performance
Over the past month, the stock has gained 0.7% against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the same sector are WEC Energy Group (WEC - Free Report) and The York Water Company (AWR - Free Report) , each currently carrying a Zacks Rank #2.
WEC Energy Group delivered an average earnings surprise of 7.6% in the last four quarters. The Zacks Consensus Estimate for its 2022 earnings has moved up 0.5% in the past 60 days.
York Water delivered an average earnings surprise of 2.2% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings has moved up 3% in the past 60 days.