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Sectors & IndustriesUtilitiesUtilities - Regulated Water
Best Water Stocks to Buy Now (2023)
Top water stocks in 2023 ranked by overall Zen Score. See the best water stocks to buy now, according to analyst forecasts for the utilities - regulated water industry.

Industry: Utilities - Regulated Wat...
OverviewZen ScorePriceValuationFinancialsForecastEarnings & RevenueDividendsOwnership
Technicals
Ticker
Company
Country
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
ARIS
ARIS WATER SOLUTIONS INC
United States
$501.36M57,627,44139.08%60.92%Net SellingNet Selling
MSEX
MIDDLESEX WATER CO
United States
$1.32B17,642,14770.32%5.44%Net Selling
CWCO
CONSOLIDATED WATER CO LTD
Cayman Islands
$218.98M15,292,10848.80%7.20%Net Buying
PCYO
PURE CYCLE CORP
United States
$218.28M23,986,64514.13%85.87%Net Selling
YORW
YORK WATER CO
United States
$630.63M14,287,03746.84%4.22%Net BuyingNet Buying
CWT
CALIFORNIA WATER SERVICE GROUP
United States
$3.09B55,600,90580.85%1.96%Net SellingNet Buying
CDZI
CADIZ INC
United States
$232.79M55,823,81015.39%84.61%Net BuyingNet Buying
SBS
COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
Brazil
$6.41B683,509,86910.61%0.00%
WTRG
ESSENTIAL UTILITIES INC
United States
$11.03B264,141,26572.97%0.68%Net SellingNet Selling
AWK
AMERICAN WATER WORKS COMPANY INC
United States
$25.25B181,858,61985.17%0.64%Net SellingNet Selling
SJW
SJW GROUP
United States
$2.26B30,846,57477.85%22.15%Net SellingNet Selling
AWR
AMERICAN STATES WATER CO
United States
$3.15B36,969,62275.42%2.28%Net SellingNet Buying
ARTNA
ARTESIAN RESOURCES CORP
United States
$497.75M9,504,43849.43%9.41%Net Buying
GWRS
GLOBAL WATER RESOURCES INC
United States
$304.12M23,871,04623.39%76.61%Net BuyingNet Selling
1

Water Stocks FAQ

What are the best water stocks to buy right now in Mar 2023?

According to Zen Score, the 3 best water utility stocks to buy right now are:

1. Aris Water Solutions (NYSE:ARIS)


Aris Water Solutions (NYSE:ARIS) is the top water stock with a Zen Score of 41, which is 8 points higher than the water industry average of 33. It passed 17 out of 38 due diligence checks and has strong fundamentals. Aris Water Solutions has seen its stock lose -53.28% over the past year, underperforming other water stocks by -45 percentage points.

Aris Water Solutions has an average 1 year price target of $17.00, an upside of 95.4% from Aris Water Solutions's current stock price of $8.70.

Aris Water Solutions stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Aris Water Solutions, 37.5% have issued a Strong Buy rating, 37.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Consolidated Water Co (NASDAQ:CWCO)


Consolidated Water Co (NASDAQ:CWCO) is the second best water stock with a Zen Score of 39, which is 6 points higher than the water industry average of 33. It passed 13 out of 38 due diligence checks and has average fundamentals. Consolidated Water Co has seen its stock return 42.91% over the past year, overperforming other water stocks by 51 percentage points.

Consolidated Water Co has an average 1 year price target of $20.00, an upside of 39.66% from Consolidated Water Co's current stock price of $14.32.

Consolidated Water Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Consolidated Water Co, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Middlesex Water Co (NASDAQ:MSEX)


Middlesex Water Co (NASDAQ:MSEX) is the third best water stock with a Zen Score of 39, which is 6 points higher than the water industry average of 33. It passed 14 out of 38 due diligence checks and has average fundamentals. Middlesex Water Co has seen its stock lose -27.65% over the past year, underperforming other water stocks by -19 percentage points.

Middlesex Water Co has an average 1 year price target of $88.00, an upside of 17.36% from Middlesex Water Co's current stock price of $74.98.

Middlesex Water Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Middlesex Water Co, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the water stocks with highest dividends?

Out of 12 water stocks that have issued dividends in the past year, the 3 water stocks with the highest dividend yields are:

1. Essential Utilities (NYSE:WTRG)


Essential Utilities (NYSE:WTRG) has an annual dividend yield of 3.39%, which is 1 percentage points higher than the water industry average of 2.24%. Essential Utilities's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Essential Utilities's dividend has shown consistent growth over the last 10 years.

Essential Utilities's dividend payout ratio of 63.8% indicates that its dividend yield is sustainable for the long-term.

2. Aris Water Solutions (NYSE:ARIS)


Aris Water Solutions (NYSE:ARIS) has an annual dividend yield of 3.1%, which is 1 percentage points higher than the water industry average of 2.24%.

Aris Water Solutions's dividend payout ratio of 900% indicates that its dividend yield might not be sustainable for the long-term.

3. Artesian Resources (NASDAQ:ARTNA)


Artesian Resources (NASDAQ:ARTNA) has an annual dividend yield of 2.64%, which is the same as the water industry average of 2.24%. Artesian Resources's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Artesian Resources's dividend has shown consistent growth over the last 10 years.

Artesian Resources's dividend payout ratio of 58.1% indicates that its dividend yield is sustainable for the long-term.

Why are water stocks down?

Water stocks were down -2.52% in the last day, and down -1.28% over the last week. Sjw Group was the among the top losers in the utilities - regulated water industry, dropping -4.94% yesterday.

Shares of several utility companies are trading lower as rising yields cause a rotation out of high-paying dividend stocks.

What are the most undervalued water stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued water stocks right now are:

1. Aris Water Solutions (NYSE:ARIS)


Aris Water Solutions (NYSE:ARIS) is the most undervalued water stock based on WallStreetZen's Valuation Score. Aris Water Solutions has a valuation score of 43, which is 22 points higher than the water industry average of 21. It passed 3 out of 7 valuation due diligence checks.

Aris Water Solutions's stock has dropped -53.28% in the past year. It has underperformed other stocks in the water industry by -45 percentage points.

2. Pure Cycle (NASDAQ:PCYO)


Pure Cycle (NASDAQ:PCYO) is the second most undervalued water stock based on WallStreetZen's Valuation Score. Pure Cycle has a valuation score of 43, which is 22 points higher than the water industry average of 21. It passed 3 out of 7 valuation due diligence checks.

Pure Cycle's stock has dropped -24.48% in the past year. It has underperformed other stocks in the water industry by -16 percentage points.

3. Sabesp (NYSE:SBS)


Sabesp (NYSE:SBS) is the third most undervalued water stock based on WallStreetZen's Valuation Score. Sabesp has a valuation score of 43, which is 22 points higher than the water industry average of 21. It passed 3 out of 7 valuation due diligence checks.

Sabesp's stock has gained 1.85% in the past year. It has overperformed other stocks in the water industry by 10 percentage points.

Are water stocks a good buy now?

61.54% of water stocks rated by analysts are a strong buy right now. On average, analysts expect water stocks to rise by 17.48% over the next year.

What is the average p/e ratio of the utilities - regulated water industry?

The average P/E ratio of the utilities - regulated water industry is 29.47x.
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