Global Water Resources (GWRS) Soars 5.2%: Is Further Upside Left in the Stock?

Company Overview - Global Water Resources, Inc. (GWRS) shares increased by 5.2% to close at $10.75, supported by strong trading volume, and have gained 5.3% over the past four weeks [1] - The company employs a Total Water Management approach to improve water sustainability and resource efficiency, focusing on the treatment, recycling, and reuse of water [2] Growth Strategy - GWRS is expanding its operations through strategic acquisitions of smaller water and wastewater utilities in high-growth areas, which is expected to drive revenue growth and enhance cash flows [3] - Favorable rate case approvals allow the company to recover infrastructure investments and generate reasonable returns, further supporting revenue growth [3] Financial Performance - The company is projected to report quarterly earnings of $0.09 per share, reflecting a year-over-year decline of 25%, while revenues are expected to reach $15.2 million, an increase of 6.2% from the previous year [4] - The consensus EPS estimate for GWRS has remained unchanged over the last 30 days, indicating that stock price movements may be influenced by trends in earnings estimate revisions [5] Industry Context - GWRS is part of the Zacks Utility - Water Supply industry, where Middlesex Water (MSEX) also operates, having closed 1.3% higher at $54.85, with a 2% return over the past month [5] - Middlesex Water's consensus EPS estimate has remained stable at $0.86, showing a year-over-year increase of 7.5%, and it currently holds a Zacks Rank of 3 (Hold) [6]