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Why You Should Add York Water (YORW) to Your Portfolio Now

The York Water Company’s YORW ongoing investments to build and improve infrastructure, steady dividend payments and upward estimate revisions make it a good investment candidate.

Let’s focus on the factors that make this 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.

Growth Projections

The Zacks Consensus Estimate for 2022 earnings per share and revenues is pegged at $1.38 and $59 million, suggesting an increase of 6.2% and 7%, respectively, from the year-ago period.

The consensus mark for 2023 earnings and revenues is pegged at $1.43 and $61 million, respectively. The bottom- and top-line estimates suggest a 3.6% and 3.4% year-over-year increase, respectively.

Surprise History & Dividend Yield

York Water’s four-quarter positive earnings surprise is nearly 5.5%, on average. The current dividend yield of the company is 1.71%.

Return on Equity (ROE)

The ROE of a company indicates how efficiently the company is utilizing its funds to generate returns. The current ROE of York Water is 10.42 compared with the sector’s average of 6.9, which indicates that the company is utilizing its funds better than companies in its sector.

Debt to Capital

The company’s debt-to-capital ratio is 37.8%, which is lower than the industry average of 46.64%. This indicates that it is managing operations more efficiently than its peers by utilizing less debt. Its time-to-interest-earned ratio at the end of third-quarter 2022 was 4.7, which suggests that the company has enough financial flexibility to meet debt obligations in the near term without any difficulties.

Price Performance

In the past six months, the stock has gained 13% compared with the industry’s 6.2% rally.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks in the Utilities sector include American Electric Power AEP, NiSource NI and Global Water Resources GWRS. All companies currently carry a Zacks Rank of 2.

American Electric Power, NiSource and Global Water Resources delivered an average positive earnings surprise of 2.9%, 0.3% and 180%, respectively, in the last four quarters.

The Zacks Consensus Estimate for 2022 earnings for American Electric Power, NiSource and Global Water Resources has moved 0.8%, 0.7% and 5% upward, respectively, in the past 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NiSource, Inc (NI) : Free Stock Analysis Report

American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report

The York Water Company (YORW) : Free Stock Analysis Report

Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report

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Zacks Investment Research