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 $25.2 million.
  • WTR has traded 9,219 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 2.2%. WTR has a PE ratio of 28. Currently there are 5 analysts that rate Aqua America a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Aqua America has been 867,200 shares per day over the past 30 days. Aqua America has a market cap of $5.6 billion and is part of the utilities sector and utilities industry. Shares are up 6% year-to-date as of the close of trading on Monday.

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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 and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for AQUA AMERICA INC is rather high; currently it is at 53.98%. Regardless of WTR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WTR's net profit margin of 14.42% compares favorably to the industry average.
  • AQUA AMERICA INC's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over 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 ($1.34 versus $1.13).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Water Utilities industry and the overall market on the basis of return on equity, AQUA AMERICA INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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