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Reasons to Add Primo Water (PRMW) to Your Portfolio Right Now
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Primo Water Corporation’s (PRMW - Free Report) growth prospects, strong dividend history and rising earnings estimates make it a great investment opportunity in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a robust investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for the company’s 2024 EPS has increased 17.33% to 88 cents in the past 90 days. The Zacks Consensus Estimate for PRMW’s first-quarter 2024 earnings per share (EPS) has risen 55.55% to 14 cents in the past 60 days.
The company’s (three to five years) earnings growth rate is pegged at 12.9%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing funds to generate higher returns. Currently, PRMW’s ROE is 9.48%, higher than the sector’s average of 8.54%. This indicates that the company has been utilizing funds more constructively than its peers in the utility sector.
Solvency & Liquidity
PRMW’s times interest earned ratio (TIE) at the end of the fourth quarter of 2023 was 2.3. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
The current ratio at the end of the fourth quarter was 2.03, much higher than the industry’s average of 0.92. The ratio, being greater than one, indicates the company’s ability to meet its future short-term liabilities without difficulties.
Dividend History
PRMW has been increasing shareholders’ value through dividend payments. In February 2024, Primo Water announced a quarterly dividend of 9 cents per share, an increase of 12.5% from the previous level of 8 cents per share, resulting in an annual dividend of 36 cents per share. PRMW’s current dividend yield is 1.97%, better than the Zacks S&P 500 composite’s yield of 1.32%.
Price Performance
In the past three months, the stock has returned 10.3% against the industry’s 3.7% decline.
AWR’s long-term earnings growth rate is 6.3%. The company delivered an average earnings surprise of 3.12% in the last four quarters.
AWK’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for American Water Works’ 2024 EPS is pegged at $5.20, which implies a year-over-year improvement of 6.12%.
VEOEY’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for Veolia Environnement’s 2024 EPS is pegged at $2.24, which suggests year-over-year growth of 279.66%.
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Reasons to Add Primo Water (PRMW) to Your Portfolio Right Now
Primo Water Corporation’s (PRMW - Free Report) growth prospects, strong dividend history and rising earnings estimates make it a great investment opportunity in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a robust investment option at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for the company’s 2024 EPS has increased 17.33% to 88 cents in the past 90 days. The Zacks Consensus Estimate for PRMW’s first-quarter 2024 earnings per share (EPS) has risen 55.55% to 14 cents in the past 60 days.
The company’s (three to five years) earnings growth rate is pegged at 12.9%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing funds to generate higher returns. Currently, PRMW’s ROE is 9.48%, higher than the sector’s average of 8.54%. This indicates that the company has been utilizing funds more constructively than its peers in the utility sector.
Solvency & Liquidity
PRMW’s times interest earned ratio (TIE) at the end of the fourth quarter of 2023 was 2.3. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
The current ratio at the end of the fourth quarter was 2.03, much higher than the industry’s average of 0.92. The ratio, being greater than one, indicates the company’s ability to meet its future short-term liabilities without difficulties.
Dividend History
PRMW has been increasing shareholders’ value through dividend payments. In February 2024, Primo Water announced a quarterly dividend of 9 cents per share, an increase of 12.5% from the previous level of 8 cents per share, resulting in an annual dividend of 36 cents per share. PRMW’s current dividend yield is 1.97%, better than the Zacks S&P 500 composite’s yield of 1.32%.
Price Performance
In the past three months, the stock has returned 10.3% against the industry’s 3.7% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are American States Water (AWR - Free Report) , American Water Works (AWK - Free Report) and Veolia Environnement (VEOEY - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AWR’s long-term earnings growth rate is 6.3%. The company delivered an average earnings surprise of 3.12% in the last four quarters.
AWK’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for American Water Works’ 2024 EPS is pegged at $5.20, which implies a year-over-year improvement of 6.12%.
VEOEY’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for Veolia Environnement’s 2024 EPS is pegged at $2.24, which suggests year-over-year growth of 279.66%.