Connecticut Water Continues To Fortify Water Infrastructure

Connecticut Water Services Inc. (NASDAQ:CTWS) continues to strengthen its water infrastructure to deliver safe and potable water to the customers and communities in its service territories. The company has invested $17 million in 2017 to replace old and aging pipelines and aims to invest nearly $17.4 million in 2018 for the same purpose.

Since 2008, Connecticut Water has invested in excess of $139 million to replace 118 miles of water mains, which reduced water loss from leaks and breaks. The pipes are being replaced through the Water Infrastructure and Conservation Adjustment (WICA) program. Connecticut Water has plans to continue its WICA program to keep on replacing old lines and increase reliability of services.

Water Space Requires Regular Investment

Some of the water mains in the United States are nearly a century old and require immediate replacement. Investment of billions of dollars is required to improve the water infrastructure.

American Water Works (NYSE:AWK) has been investing regularly to upgrade and strengthen existing water and wastewater infrastructure, which will allow it to provide better services to expand customer base. The company anticipates investing in the range of $8-$8.6 billion over the next five years. Out of the planned expenditure, $7.2 billion will be directed to regulated business.

Aqua America Inc. (NYSE:WTR) , a water utility, has plans to make capital investments of more than $450 million in 2017 as part of an ambitious investment target of more than $1.2 billion in the 2017-2019 period.

Expansion Through Acquisition

Connecticut Water, like some of its water utility peers, has been engaged in strategic acquisitions of smaller water service providers. Strategic acquisitions continue to be major part of this water utility’s growth strategy. Since 2012, acquisitions have expanded the company’s customer base by 45%. During the first nine months of 2017, the company completed two acquisitions, which added 9,500 customers to its existing customer base.

However, American States Water Company (NYSE:AWR) is not so active in acquisitions like other water utilities and focuses on California to earn its revenues.

Price Movement

Connecticut Water’s stock has lost 2.5% last year against the industry’s rally of 14.4%.

Zacks Rank

Connecticut Water currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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