Reasons to Add SJW Group Stock to Your Portfolio Right Now

SJW Group’s SJW strategic investments to strengthen its existing infrastructure and expand operations are expected to drive its performance further. The company is also benefiting from its strategic water and wastewater system acquisitions. Given its growth opportunities, SJW Group makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment option at the moment.SJW’s Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 0.7% in the past seven days to $2.96.The Zacks Consensus Estimate for 2025 revenues is pinned at $768.42 million, implying a year-over-year increase of 2.7%.SJW’s long-term (three to five years) earnings growth rate is 4.12%. The company delivered an average earnings surprise of 13.3% for the trailing four quarters.Debt Position of SJWSJW Group’s total debt to capital is 57.24%, better than the sector’s average of 60.39%.The time-to-interest earned ratio at the end of the fourth quarter of 2024 was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.SJW’s Dividend HistorySJW has been consistently paying dividends and increasing its shareholders’ value. The CAGR for its dividend has exceeded 5.9% over the past five years. The company has paid dividends for more than 80 consecutive years, with increases in the past 57 years. Currently, its quarterly dividend is 42 cents per share, resulting in an annualized dividend of $1.68. Its current dividend yield is 3.09%, better than the Zacks S&P 500 composite’s 1.37%.  SJW’s Systematic InvestmentsSJW Group remains focused on investing in its operations and remaining actively engaged in its local communities. It invested nearly $353 million in water and wastewater infrastructure in 2024 and expects to invest $473 million in 2025, up 34% from the actual spend in 2024. The company has updated its five-year plan to invest $2 billion in water and wastewater infrastructure, indicating a 25% increase over the previous plan.SJW’s Stock Price PerformanceIn the past three months, the stock has returned 13.2% compared with the sector’s 0.7% growth. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are Middlesex Water Company MSEX, sporting a Zacks Rank #1 (Strong Buy) at present, and American Water Works AWK and Exelon Corporation EXC, both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.MSEX’s long-term earnings growth rate is 6.1%. The Zacks Consensus Estimate for MSEX’s 2025 EPS is pegged at $2.53, implying a year-over-year improvement of 2.4%.AWK’s long-term earnings growth rate is 7.4%. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.72, indicating a year-over-year improvement of 6.1%.EXC’s long-term earnings growth rate is 5.99%. The company delivered an average earnings surprise of 7.6% for the trailing four quarters. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Exelon Corporation (EXC): Free Stock Analysis Report American Water Works Company, Inc. (AWK): Free Stock Analysis Report Middlesex Water Company (MSEX): Free Stock Analysis Report SJW Group (SJW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks