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Middlesex Water (MSEX) Surges 13.7%: Is This an Indication of Further Gains?

Middlesex Water (MSEX) shares rallied 13.7% in the last trading session to close at $96.86. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.9% loss over the past four weeks.

Middlesex Water Company has been registering a steady earnings performance and is set to become a member of S&P SmallCap 600 effective prior to the opening of trading on Jul 15, 2021. The Zacks Consensus Estimate for 2021 earnings per share and revenues reflects a year-over-year growth of 0.5% and 2.4% respectively.

The company gains from its stable residential customer base and supportive regulatory environment. Middlesex Water makes steady investment to improve its utility infrastructure and provide quality services to its customers. Courtesy of its steady performance the company was able to raise its dividend rate for consecutive 48 years.

This water utility is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +7.3%. Revenues are expected to be $36 million, up 2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Middlesex Water, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MSEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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Middlesex Water Company (MSEX): Free Stock Analysis Report
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