Sectors & IndustriesUtilitiesUtilities - Regulated Water

Best Water Stocks to Buy Now (2025)

Top water stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best water stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best water utility stocks to buy right now are:

Artesian Resources (NASDAQ:ARTNA) is the #1 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Artesian Resources (NASDAQ:ARTNA) is: Value: C, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Artesian Resources (NASDAQ:ARTNA) has a Due Diligence Score of 39, which is 2 points higher than the water industry average of 37.

ARTNA passed 13 out of 38 due diligence checks and has average fundamentals. Artesian Resources has seen its stock lose -3.09% over the past year, underperforming other water stocks by -11 percentage points.

Consolidated Water Co (NASDAQ:CWCO) is the #2 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Consolidated Water Co (NASDAQ:CWCO) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Consolidated Water Co (NASDAQ:CWCO) has a Due Diligence Score of 61, which is 24 points higher than the water industry average of 37.

CWCO passed 22 out of 38 due diligence checks and has strong fundamentals. Consolidated Water Co has seen its stock return 11.87% over the past year, overperforming other water stocks by 4 percentage points.

American States Water Co (NYSE:AWR) is the #3 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for American States Water Co (NYSE:AWR) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

American States Water Co (NYSE:AWR) has a Due Diligence Score of 37, which is equal to the water industry average of 37.

AWR passed 13 out of 38 due diligence checks and has average fundamentals. American States Water Co has seen its stock return 10.98% over the past year, overperforming other water stocks by 4 percentage points.

American States Water Co has an average 1 year price target of $77.50, a downside of -0.82% from American States Water Co's current stock price of $78.14.

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

Out of 11 water stocks that have issued dividends in the past year, the 3 water stocks with the highest dividend yields are:

Essential Utilities (NYSE:WTRG) has an annual dividend yield of 3.43%, which is 1 percentage points higher than the water industry average of 2.19%. 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 44% indicates that its dividend yield is sustainable for the long-term.

Artesian Resources (NASDAQ:ARTNA) has an annual dividend yield of 2.69%, which is 1 percentage points higher than the water industry average of 2.19%. 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 57.4% indicates that its dividend yield is sustainable for the long-term.

California Water Service Group (NYSE:CWT) has an annual dividend yield of 2.59%, which is the same as the water industry average of 2.19%. California Water Service Group's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. California Water Service Group's dividend has shown consistent growth over the last 10 years.

California Water Service Group's dividend payout ratio of 51.8% indicates that its dividend yield is sustainable for the long-term.

Water stocks were down -0.63% in the last day, and up 1.66% over the last week.

We couldn't find a catalyst for why water stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued water stocks right now are:

Sabesp (NYSE:SBS) is the most undervalued water stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Sabesp has a valuation score of 29, which is 3 points higher than the water industry average of 26. It passed 2 out of 7 valuation due diligence checks.

Sabesp's stock has gained 50.22% in the past year. It has overperformed other stocks in the water industry by 43 percentage points.

Artesian Resources (NASDAQ:ARTNA) is the second most undervalued water stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Artesian Resources has a valuation score of 43, which is 17 points higher than the water industry average of 26. It passed 3 out of 7 valuation due diligence checks.

Artesian Resources's stock has dropped -3.09% in the past year. It has underperformed other stocks in the water industry by -11 percentage points.

H2o America (NASDAQ:HTO) is the third most undervalued water stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

H2o America has a valuation score of 43, which is 17 points higher than the water industry average of 26. It passed 3 out of 7 valuation due diligence checks.

H2o America's stock has gained 2.52% in the past year. It has underperformed other stocks in the water industry by -5 percentage points.

42.86% of water stocks rated by analysts are a buy right now. On average, analysts expect water stocks to rise by 7.29% over the next year.

0% of water stocks have a Zen Rating of A (Strong Buy), 0% of water stocks are rated B (Buy), 78.57% are rated C (Hold), 21.43% are rated D (Sell), and 0% are rated F (Strong Sell).