What Are the Hottest Water Stocks Right Now? 3 Top Picks.

Industry Overview - The global water and wastewater treatment market is projected to grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2032, reaching a valuation of $617.81 billion [2] - Water stocks are considered essential due to the critical nature of water as a resource, leading to significant investment in management and infrastructure [1] Company Analysis: American Water Works (AWK) - American Water Works provides water and wastewater services to approximately 1,700 communities across 14 states, serving about 3.5 million active customers [2] - The company has shown financial consistency with an average earnings per share (EPS) of $1.23 over the past four quarters, surpassing the consensus estimate of $1.19, resulting in an earnings surprise of 2.85% [3] - For fiscal 2024, analysts project EPS to reach $5.23, a nearly 7% increase from the previous year, with sales expected to rise to $4.48 billion, up 5.9% from $4.23 billion [3] Company Analysis: Artesian Resources (ARTNA) - Artesian Resources operates in Delaware, Maryland, and Pennsylvania, providing water and wastewater services to a diverse customer base [5] - The company reported an average EPS of 43 cents, exceeding the consensus estimate of 40 cents, yielding an earnings surprise of 8.28% [5] - For fiscal 2024, EPS is projected to rise to $1.99, indicating a growth of over 19%, with sales expected to reach $105 million, up 6.2% from $98.86 million [6] Company Analysis: Middlesex Water (MSEX) - Middlesex Water serves residential, commercial, industrial, and fire-protection customers in New Jersey and Delaware, and has seen a recent equity value increase of over 26% [6] - The company posted an average EPS of 51 cents, which was below the consensus estimate of 61 cents, resulting in a negative earnings surprise of 13.53% [7] - For fiscal 2024, sales are projected to rise to $187.2 million, a 12.6% increase from $166.27 million, with EPS expected to increase by 30.11% to $2.29 [7]