Reasons to Include California Water Stock in Your Portfolio Right Away

Core Viewpoint - California Water Service Group (CWT) is positioned as a strong investment option in the Zacks Utility Water Supply industry due to its consistent infrastructure investments, acquisitions, and organic growth strategies [1] Growth Forecast & Surprise History - The Zacks Consensus Estimate for CWT's 2026 earnings per share (EPS) has increased by 0.8% to $2.53 over the past 60 days [2] - The estimated revenues for 2026 are projected at $1.02 billion, indicating a year-over-year growth of 5.7% [2] - CWT's long-term earnings growth rate is forecasted at 8.8%, with an average earnings surprise of 57.87% over the last four quarters [2] Debt Profile Overview - CWT's total debt to capital ratio stands at 47.25%, which is better than the industry average of 56.04% [3] - The times interest earned (TIE) ratio for CWT was 3 at the end of Q1 2025, indicating the company can comfortably meet its interest obligations [3] Return to Shareholders - CWT has consistently increased shareholder value through dividends, currently paying a quarterly dividend of $0.30 per share, leading to an annualized dividend of $1.20 [4] - The current dividend yield for CWT is 2.55%, surpassing the industry average of 2.42% [4] Structured Investment Approach - CWT plans to invest $2.06 billion in capital expenditures from 2025 to 2027, with $660 million allocated for 2025 [5] - These investments are aimed at maintaining, upgrading, and expanding existing infrastructure to support a growing customer base [5] Key Acquisitions - CWT has expanded its operations in the western United States through strategic acquisitions, including agreements to acquire water utility assets from Casa Loma Water Company and Palm Mutual Water Company [6] - These acquisitions are expected to enhance the company's customer base and operational capacity [6] Stock Performance - CWT shares have increased by 0.3% over the past month, outperforming the industry's growth of 0.01% [9]