Trade-Ideas LLC identified

Aqua America

(

WTR

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Aqua America as such a stock due to the following factors:

  • WTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.8 million.
  • WTR has traded 317,143 shares today.
  • WTR is trading at a new lifetime high.

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More details on WTR:

Aqua America, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States. It offers water and wastewater services through operating and maintenance contracts with municipal authorities and other parties. The stock currently has a dividend yield of 2.1%. WTR has a PE ratio of 29. Currently there are 3 analysts that rate Aqua America a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Aqua America has been 727,000 shares per day over the past 30 days. Aqua America has a market cap of $6.0 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.56 and a short float of 3% with 6.24 days to cover. Shares are up 14.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aqua America as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for AQUA AMERICA INC is rather high; currently it is at 54.24%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.86% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $94.84 million or 5.35% when compared to the same quarter last year. Despite an increase in cash flow, AQUA AMERICA INC's cash flow growth rate is still lower than the industry average growth rate of 15.45%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.04% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • AQUA AMERICA INC has improved earnings per share by 7.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AQUA AMERICA INC reported lower earnings of $1.13 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($1.33 versus $1.13).

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