Should Value Investors Buy Merck KGaA (MKKGY) Stock?

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Bryn Mawr, PA-based Essential Utilities, Inc. — through its subsidiaries — operates regulated utilities that provide water, wastewater and natural gas services in the United States. The company provides utility services to nearly 5.5 million people in the United States. Essential Utilities completed the acquisition of Peoples Gas on Mar 16, 2020 and began to provide natural gas services, in addition to water and wastewater services. Prior to its name change on Feb 3, 2020, Essential Utilities was known as Aqua America, Inc.

WTRG boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 6.6% year-over-year for 2025, while Wall Street anticipates its top line to improve by 12.1%

Two analysts revised their earnings upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0 to $2.10 per share. WTRG boasts an average earnings surprise of 8.1%.

On a historic basis, Essential Utilities has generated cash flow growth of 16.7%, and is expected to report cash flow expansion of 8.1% this year.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, WTRG should be on investors' short lists.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Essential Utilities Inc. (WTRG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Scroll to Top