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Middlesex Water (MSEX) Surges 5.1%: Is This an Indication of Further Gains?

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Middlesex Water (MSEX - Free Report) shares soared 5.1% in the last trading session to close at $59.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.7% gain over the past four weeks.

Middlesex Water Company benefits from rising demand from its stable residential customer base and supportive regulatory environment. Middlesex Water makes steady investments to improve its utility infrastructure and provide quality services to its customers. Courtesy of its steady performance the company was able to raise its dividend rate for consecutive 50 years.

Middlesex Water Company anticipates a stable revenue increase, courtesy of its operating efficiencies and strategic investments. The Zacks Consensus Estimate for 2024 earnings per share and revenues reflects a year-over-year growth of 29.5% and 9.5% respectively.

This water utility is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +16.4%. Revenues are expected to be $47 million, up 9.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Middlesex Water, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MSEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Middlesex Water is a member of the Zacks Utility - Water Supply industry. One other stock in the same industry, York Water (YORW - Free Report) , finished the last trading session 1.2% higher at $39.49. YORW has returned 7.3% over the past month.

York Water's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. Compared to the company's year-ago EPS, this represents no change. York Water currently boasts a Zacks Rank of #3 (Hold).


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