Oversold Utility Stocks Present Buying Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Source: Benzinga
- Oversold Stocks Overview: In the utilities sector, stocks with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- Individual Stock Analysis: Korea Electric Power Corp (KEP) and York Water Co (YORW) are on the oversold list, with YORW showing an RSI of 28.3, suggesting a possible short-term rebound.
- York Water Company Update: On March 3, York Water posted mixed quarterly results, leading to a 6% decline in its stock price over the past five days, currently trading at $31.07, near its 52-week low of $29.68.
- Market Sentiment and Investment Strategy: With the oversold condition in utility stocks, investors can leverage this opportunity, using momentum scores (26.12) and value scores (62.68) to evaluate potential investment prospects.
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Analyst Views on GWRS
Wall Street analysts forecast GWRS stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 7.730
Low
11.50
Averages
13.25
High
15.00
Current: 7.730
Low
11.50
Averages
13.25
High
15.00
About GWRS
Global Water Resources, Inc. is a water resource management company that owns and operates 39 systems which provide water, wastewater, and recycled water services. The Company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. It seeks to deploy an integrated approach, referred to as Total Water Management (TWM). TWM is a comprehensive approach to water utility management that reduces demand on scarce non-renewable water sources and costly renewable water supplies, in a manner that ensures sustainability and benefits communities both environmentally and economically. TWM also implements smart water management programs, including advanced and remote metering infrastructure. It recycles over one billion gallons of water annually. It enables smart water management programs such as two remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Director Election Results: At the 2026 Annual Meeting, out of 28,763,634 shares, 24,858,154 were voted, with David Rousseau elected as a director with 96.05% support, highlighting the stability of the company's governance structure and shareholder trust.
- Accounting Firm Appointment: Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year 2026, receiving 99.70% approval, indicating strong shareholder confidence in the company's financial transparency and audit quality.
- Executive Compensation Approval: The advisory approval of the executive compensation was passed with 95.87% support, reflecting shareholder trust in the management team and the reasonableness of its compensation policies.
- Water Resource Management Achievements: Global Water Resources has excelled in water management, recycling 19.8 billion gallons since 2004, earning the title of 'Utility of the Future' and demonstrating its leadership in sustainability and water conservation efforts.
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- Revenue Growth: Total revenue for Q1 2026 reached $13.3 million, reflecting an increase of $0.8 million or 6.7% compared to Q1 2025, yet the company reported a net loss of $0.4 million, indicating pressure on profitability despite revenue gains.
- Expense Control Challenges: Operating expenses surged by approximately $1.7 million or 15.1% year-over-year, primarily driven by increased depreciation and amortization costs, which pose significant challenges for the company in managing costs and maintaining future profitability.
- Service Connection Growth: As of March 31, 2026, total active service connections rose by 5.7% to 68,885, demonstrating stability and an expanding customer base, although the growth rate has slowed compared to previous quarters.
- Future Outlook and Strategy: The anticipated implementation of new water rates on November 1, 2026, is expected to generate approximately $2.3 million in additional revenue for GW-Santa Cruz, while plans to withdraw and refile for GW-Palo Verde's rate review in 2027 indicate strategic adjustments in response to regulatory challenges.
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- Disappointing Earnings: Global Water Resources reported a Q1 non-GAAP EPS of -$0.01, missing expectations by $0.04, indicating pressure on profitability that may affect investor confidence.
- Lackluster Revenue Growth: The company generated $13.29 million in revenue for Q1, a 6.7% year-over-year increase, yet fell short of expectations by $3.07 million, reflecting unmet market demand that could impact future growth strategies.
- Service Connection Growth: As of March 31, 2026, total active service connections increased by 5.7% year-over-year to 68,885, but the annualized growth rate, excluding acquisitions, was only 1.9%, highlighting challenges in expanding service offerings.
- Infrastructure Investment: The company invested $6.3 million in Q1 2026 in infrastructure projects to support existing utilities and ongoing growth, demonstrating a commitment to future development despite financial pressures.
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- Earnings Announcement: Global Water Resources (GWRS) is set to release its Q1 2023 earnings on May 14 before market open, with a consensus EPS estimate of -$0.02, reflecting a significant 200% year-over-year decline, indicating substantial profitability challenges.
- Revenue Expectations: The anticipated revenue for Q1 is $14.09 million, representing a 13.1% increase year-over-year; however, the decline in profitability may raise investor concerns and impact the company's stock performance.
- Historical Performance: Over the past year, GWRS has beaten EPS estimates 50% of the time and revenue estimates 25% of the time, suggesting volatility in its earnings predictions, which could undermine market confidence.
- Future Outlook: While the company is undertaking a $70 million rate base expansion and signaling a focus on expense control for 2026, the current earnings outlook and valuation levels may lead investors to adopt a cautious stance regarding its future growth prospects.
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- Dividend Declaration: Global Water Resources has announced a monthly cash dividend of $0.02533 per share, translating to an annual dividend rate of $0.30396, reflecting the company's stable cash flow and commitment to shareholder returns.
- Payment Schedule: The dividend will be payable on May 29, 2026, to shareholders on record as of May 15, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Water Management Achievements: The company operates 39 water systems and recycles over 1 billion gallons of water annually, with a total of 19.3 billion gallons recycled since 2004, showcasing its leadership and sustainability in water resource management.
- Industry Recognition: Global Water Resources has received national recognition as a 'Utility of the Future Today' for its superior water reuse practices and the Cityworks Excellence in Departmental Practice Award, further solidifying its reputation and influence in the industry.
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- Settlement Agreement Reached: Global Water Resources has reached a unanimous settlement with the Arizona Corporation Commission to resolve rate cases for GW-Santa Cruz and GW-Palo Verde, with an expected annual revenue increase of approximately $2.3 million for GW-Santa Cruz, reflecting a capital structure of 55% equity and 45% debt, and a return on equity of 9.6%.
- Rate Adjustment Plan: The new rates for GW-Santa Cruz are set to take effect on November 1, 2026, with an estimated bill increase of only $2.68 for the median user consuming 5,500 gallons per month, aimed at enhancing customer satisfaction and strengthening market competitiveness.
- Withdrawal of GW-Palo Verde Case: The rate case for GW-Palo Verde will be withdrawn, with plans to refile in 2027 using a 2026 test year, indicating the company's strategic planning for future rate adjustments.
- Increase in Temporary Bill Credit: GW-Palo Verde commits to increasing the temporary bill credit by approximately $0.4 million annually until the next rate case is resolved, anticipated to coincide with the new rates for GW-Santa Cruz, thereby alleviating customer burdens and enhancing loyalty.
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