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


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.


Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.


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