HomeMarket NewsThe Top 3 Water Stocks for Smart Investors in April 2024

The Top 3 Water Stocks for Smart Investors in April 2024

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American Water Works: Navigating the Waves of Utility Stocks

As discussions about essential resources intensify amidst inflationary woes, water takes center stage in the financial narrative. American Water Works (NYSE:AWK), a stalwart in the regulated water utility sector, serves a substantial customer base spanning 1,700 communities across 14 states. This behemoth caters to approximately 3.5 million active customers, ranging from residential to commercial and even specialized categories such as food-and-beverage providers.

In the fiscal year gone by, American Water faced a mixed bag performance-wise. Despite a slight earnings hiccup in the first quarter, the company steadily improved, beating earnings estimates from the second quarter onwards. Experts project a favorable outlook for 2024, with an anticipated EPS of $5.24, outshining the prior year’s $4.90 figure. Revenue estimates for the current year stand at $4.42 billion, marking a 4.5% uptick from the 2023 tally of $4.23 billion.

Xylem: Sailing Smoothly in the Industrial Waters

Xylem (NYSE:XYL), a key player in the industrial machinery segment, boasts a global footprint in engineered products and solutions. With four operational segments under its belt, including Water Infrastructure and Applied Water, Xylem has demonstrated robust stock performance in recent times. Year-to-date, XYL has appreciated nearly 13%, with a striking 23% surge over the past 52 weeks.

Financially, Xylem has consistently surpassed earnings projections throughout 2023, with a stellar showing in the first quarter posting an EPS of 79 cents against the anticipated 62 cents. For the ongoing year, analysts forecast an EPS of $4.12, a marked improvement over last year’s $3.78. Revenue expectations stand at $8.49 billion, a substantial leap from the 2023 figure of $15.4 billion. Xylem is unquestionably among the top water stocks to consider for April.

Primo Water: An Oasis of Opportunities Amidst Challenging Terrain

Primo Water (NYSE:PRMW), a residential and commercial water solutions provider nestled in the consumer defensive sector, offers a diverse range of water-related products and services, including bottled water, dispensers, and filtration units. Since the year’s commencement, PRMW stock has surged by almost 19%, reflecting a promising trajectory.

Despite a stumble in the final quarter of 2023, where earnings missed estimates, experts foresee a bright 2024 for Primo Water. Expected EPS of 88 cents signal significant growth from last year’s 62 cents, with revenue projections at $1.86 billion surpassing the prior year’s $1.77 billion. With water’s intrinsic importance underscored, PRMW stands out as one of the prime water stocks worth investing in this April.

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