Middlesex Water (MSEX) to Invest $3.7M to Upgrade Water Mains
Middlesex Water Company MSEX announced that from the next month, it will start a $3.7-million project to upgrade drinking water infrastructure in the northwest section of the Borough of Metuchen, NJ. This project is part of Middlesex Water’s 2020 RENEW Program, through which the company intends to replace 3.3 miles or (17,500 linear feet) of water mains and service lines, valves, as well as fire hydrants for enhancing overall service quality and improving fire flows.
Upgrade and replacement of old water mains are quite essential to save precious drinking water. The old pipes, unless replaced, could result in leakage and create a possibility of contamination.
Replacement of Aging Pipeline
Billions of gallons of potable water are wasted each year in the United States due to numerous main line breaks. Middlesex Water is very active in upgrading its water infrastructure. The company — through its multi-million infrastructure investment initiative, Water for Tomorrow® Program — is replacing aging infrastructure and strengthening the water distribution system for continued service reliability, resiliency and maintaining water quality.
Other water utilities are also doing their bit to upgrade and provide quality services to clients amid the pandemic. Among the water utilities, American Water AWK is quite active in making regular investments in its service territories and maintaining the water mains. American Water has plans to invest $8.8-$9.4 billion in the 2020-2024 time period and $20-$22 billion in the next decade. These investments will allow it to maintain and expand the existing water infrastructure, as well as provide reliable water services to the expanding customer base.
In addition to American Water, Essential Utilities WTRG is also making regular investments in water and wastewater systems. Its long-term plan is to invest $2.8 billion in the 2020-2022 time period to rehabilitate and strengthen the existing water and natural gas pipeline systems.
Price Performance
Shares of Middlesex Water have outperformed the industry in the past 12 months.
Zacks Rank and Key Pick
Currently, the company has a Zacks Rank #3 (Hold). A better-ranked water utility is American States Water Company (AWR, currently holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American States Water delivered an average earnings surprise of 0.2% in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has moved up 2.7% in the past 90 days.
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Middlesex Water Company (MSEX) : Free Stock Analysis Report
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American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
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