Ratings for Essential Utilities WTRG were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $42.2, a high estimate of $46.00, and a low estimate of $39.00. A 4.95% drop is evident in the current average compared to the previous average price target of $44.40.
Investigating Analyst Ratings: An Elaborate Study
The standing of Essential Utilities among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Gregg Orrill | UBS | Lowers | Buy | $42.00 | $45.00 |
| Jonathan Reeder | Wells Fargo | Lowers | Equal-Weight | $39.00 | $43.00 |
| Julien Dumoulin-Smith | Jefferies | Lowers | Hold | $41.00 | $44.00 |
| Ben Kallo | Baird | Raises | Outperform | $46.00 | $45.00 |
| Jonathan Reeder | Wells Fargo | Lowers | Overweight | $43.00 | $45.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Essential Utilities. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Essential Utilities compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Essential Utilities's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Essential Utilities's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Essential Utilities analyst ratings.
Delving into Essential Utilities's Background
Essential Utilities is a Pennsylvania-based holding company for us water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Nearly three fourths of its water earnings come from Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. Essential exited its noncore competitive water and energy services businesses.
Essential Utilities: A Financial Overview
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Positive Revenue Trend: Examining Essential Utilities's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.84% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 15.95%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.12%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Essential Utilities's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.4%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Essential Utilities's debt-to-equity ratio stands notably higher than the industry average, reaching 1.2. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Basics of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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