#2 - Essential Utilities (NYSE:WTRG)
Unlike American Water Works, Essential Utilities (NYSE:WTRG) is not a pure play water stock. That’s because Essential Utilities is the parent company of Aqua America and Peoples Natural Gas which does business under that name. The natural gas market is more volatile than the water market and that’s reflected in the WTRG stock price which has never fully returned to its pre-pandemic level.
Putting that aside, the company does business in eight states and maintains a strong balance sheet. The company is trading at just under 30x earnings which is a value compared to the broader sector. Essential Utilities is also a dividend aristocrat having increased its dividend in each of the last 32 years. And the company’s current 2.29% dividend yield is supported by a projected growth of about 7% in earnings over the next five years.
About Essential Utilities
Essential Utilities, Inc, through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company operates through Regulated Water and Regulated Natural Gas segments. It offers water services through operating and maintenance contract with municipal authorities and other parties.
Read More - Current Price
- $39.42
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $44.00 (11.6% Upside)
