WTRG Should I Buy
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Essential Utilities Inc (WTRG) is not a strong buy at the moment for a beginner, long-term investor. While the company has positive catalysts such as the merger with American Water and increased revenue, the negative catalysts, including downgraded analyst ratings, declining net income, and EPS, as well as the lack of strong proprietary trading signals today, suggest holding off on investment until clearer growth trends emerge.
The stock is trading pre-market at $39.6, slightly below the first resistance level (R1: $40.005). The MACD histogram is positive but contracting, and RSI is neutral at 64.917. Moving averages are converging, indicating no strong trend. The stock shows a 60% chance of a minor 0.39% increase in the next day but a potential -1.26% decline over the next month.
Hedge funds are significantly increasing their holdings, with a 4551.57% increase in buying activity.
The merger with American Water has received 95% shareholder approval.
Revenue increased by 15.67% YoY in Q4 2025.
Barclays downgraded the stock to Underweight with a reduced price target of $38, citing untimely merger proceedings and affordability concerns.
Net income dropped by 28.19% YoY, and EPS fell to 0, down 100% YoY in Q4
Gross margin declined by 5.54% YoY.
No recent congress trading data or insider buying trends to support confidence.
In Q4 2025, revenue increased by 15.67% YoY to $699.1 million. However, net income dropped by 28.19% YoY to $132.7 million, and EPS fell to 0, down 100% YoY. Gross margin also declined to 64.61%, down 5.54% YoY.
Barclays downgraded the stock to Underweight with a price target of $38, citing concerns about merger proceedings and affordability issues. Northcoast upgraded the stock to Buy earlier in December 2025 with a $42 price target, but the overall sentiment is mixed to negative.
