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Reasons to Add Essential Utilities (WTRG) to Your Portfolio Now
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Essential Utilities, Inc.’s (WTRG - Free Report) rising earnings estimates and customer growth through strategic asset acquisitions make it a great investment in the utility sector. The increasing water demand is also likely to boost the company’s performance.
Currently, the company carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections
The Zacks Consensus Estimate for WTRG’s 2024 and 2025 earnings indicates year-over-year growth of 5.91% and 6.94%, respectively.
The company’s long-term (three to five years) earnings growth is pinned at 5.75%.
Surprise History & Dividend Details
Essential Utilities has a positive earnings surprise history. Its trailing four-quarter earnings surprise is 0.39%, on average.
The company has paid shareholders a cash dividend on its common stock for 79 years and has increased the dividend 33 times in the past 32 years. Its current dividend yield is 3.28%, better than the industry average yield of 2.35%.
Investments & Customer Additions
WTRG is making continuous investments to improve its water and natural gas infrastructure. The company plans to invest $1.3-1.4 billion in 2024 for infrastructure developments and $7.2 billion by 2028. It is committed to lowering emissions from natural gas, water and wastewater operations and aims to reduce annual Scope 1 and 2 emissions by 60% within 2035 from 2019 levels.
In 2023, WTRG completed seven acquisitions, which added 11,025 customers. The company expects the customer base in the water segment to expand 2-3% annually over the long term.
Price Performance
Shares of Essential Utilities have gained 2.1% in the past three months compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the sector are California Water Service Group (CWT - Free Report) , UGI Corporation (UGI - Free Report) , and Vistra Corporation (VST - Free Report) . California Water Service Group and Vistra currently sport a Zacks Rank #1 (Strong Buy) each, while UGI Corporation carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
California Water has delivered an average earnings surprise of 85.16% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 earnings indicates year-over-year growth of 246.15%.
The Zacks Consensus Estimate for Vistra’s 2024 and 2025 earnings per share increased nearly 3.95% and 18.24%, respectively, in the last 30 days. The Zacks Earnings ESP is currently pinned at 995.24%.
UGI has delivered an average earnings surprise of 19.13% in the last four quarters. The consensus estimate for earnings for 2024 and 2025 has gone up 0.69% and 0.32% respectively, in the last 90 days.
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Reasons to Add Essential Utilities (WTRG) to Your Portfolio Now
Essential Utilities, Inc.’s (WTRG - Free Report) rising earnings estimates and customer growth through strategic asset acquisitions make it a great investment in the utility sector. The increasing water demand is also likely to boost the company’s performance.
Currently, the company carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections
The Zacks Consensus Estimate for WTRG’s 2024 and 2025 earnings indicates year-over-year growth of 5.91% and 6.94%, respectively.
The company’s long-term (three to five years) earnings growth is pinned at 5.75%.
Surprise History & Dividend Details
Essential Utilities has a positive earnings surprise history. Its trailing four-quarter earnings surprise is 0.39%, on average.
The company has paid shareholders a cash dividend on its common stock for 79 years and has increased the dividend 33 times in the past 32 years. Its current dividend yield is 3.28%, better than the industry average yield of 2.35%.
Investments & Customer Additions
WTRG is making continuous investments to improve its water and natural gas infrastructure. The company plans to invest $1.3-1.4 billion in 2024 for infrastructure developments and $7.2 billion by 2028. It is committed to lowering emissions from natural gas, water and wastewater operations and aims to reduce annual Scope 1 and 2 emissions by 60% within 2035 from 2019 levels.
In 2023, WTRG completed seven acquisitions, which added 11,025 customers. The company expects the customer base in the water segment to expand 2-3% annually over the long term.
Price Performance
Shares of Essential Utilities have gained 2.1% in the past three months compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the sector are California Water Service Group (CWT - Free Report) , UGI Corporation (UGI - Free Report) , and Vistra Corporation (VST - Free Report) . California Water Service Group and Vistra currently sport a Zacks Rank #1 (Strong Buy) each, while UGI Corporation carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
California Water has delivered an average earnings surprise of 85.16% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 earnings indicates year-over-year growth of 246.15%.
The Zacks Consensus Estimate for Vistra’s 2024 and 2025 earnings per share increased nearly 3.95% and 18.24%, respectively, in the last 30 days. The Zacks Earnings ESP is currently pinned at 995.24%.
UGI has delivered an average earnings surprise of 19.13% in the last four quarters. The consensus estimate for earnings for 2024 and 2025 has gone up 0.69% and 0.32% respectively, in the last 90 days.