Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through earnings and sales projections [4] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks averaging a +23.93% annual return since 1988 [7] - There can be over 800 top-rated stocks at any time, making it essential to utilize Style Scores for selection [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: American States Water (AWR) - American States Water Company provides water, wastewater, and electricity services in the U.S. and holds a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - AWR is projected to have a year-over-year earnings growth of 4.7% for the current fiscal year, making it attractive for growth investors [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.04 to $3.32 per share, with an average earnings surprise of +3.6% [12]

Industry Overview - The Zacks Utility - Water Supply industry provides essential drinking water and wastewater services across the U.S., managing nearly 2.2 million miles of aging pipelines [3] - The industry is capital-intensive, benefiting from lower interest rates that reduce financing costs for infrastructure investments [3][5] Current Trends - The U.S. water industry is fragmented with over 50,000 community water systems, leading to inefficiencies; consolidation through mergers and acquisitions is necessary for improving service quality [4] - Aging infrastructure is a significant concern, with the American Society of Civil Engineers estimating a need for $1.25 trillion in investments over the next 20 years [6] Financial Performance - The Zacks Utility Water Supply industry has underperformed compared to the S&P 500 and the broader utility sector, gaining only 5% over the past 12 months compared to the sector's 9% and the S&P 500's 15.4% [10] - The industry is currently trading at a trailing 12-month EV/EBITDA of 10.55X, significantly lower than the S&P 500's 17.7X and the sector's 15.15X [13] Company Highlights - California Water Service Group plans to invest $2.06 billion from 2025 to 2027 to strengthen its infrastructure [19] - Global Water Resources focuses on Total Water Management, optimizing the use of recycled water, with a long-term earnings growth rate pegged at 15% [23][24] - The York Water Company plans to invest $94.5 million from 2025 to 2026 and has seen a 1.5% increase in the Zacks Consensus Estimate for 2025 earnings per share [27][28]