Should You Buy Essential Utilities Inc (WTRG) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
38.350
1 Day change
0.66%
52 Week Range
42.370
Analysis Updated At
2026/01/26
Essential Utilities Inc (WTRG) is not a strong buy at this time for a beginner investor with a long-term strategy. While the company has shown strong financial growth in the latest quarter, the technical indicators are neutral, and the options data suggests bearish sentiment. Additionally, recent analyst ratings and price target changes reflect mixed to negative sentiment, and there are no significant positive catalysts in the near term. For a long-term investor, it may be better to wait for a clearer entry point or improved market sentiment.
Technical Analysis
The technical indicators for WTRG are mixed. The MACD is positive but contracting, suggesting weakening bullish momentum. The RSI is neutral at 48.753, indicating no clear overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading close to its pivot level of 39.211, with resistance at 39.952 and support at 38.47. Overall, the technicals do not strongly support a buy decision.
Options Data
Bullish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
The low Open Interest Put-Call Ratio indicates a higher interest in calls relative to puts, but the high Option Volume Put-Call Ratio of 1.67 suggests bearish sentiment in recent trading activity. Implied volatility is relatively high (29.59) with an IV percentile of 79.2, indicating elevated uncertainty.
Technical Summary
Sell
8
Buy
4
Positive Catalysts
Hedge funds have significantly increased their buying activity, with a 4551.57% increase in the last quarter. The company's Q3 financials show strong YoY growth in revenue (9.58%), net income (32.67%), and EPS (32.00%).
Neutral/Negative Catalysts
Recent analyst downgrades, including Barclays' double downgrade to Underweight with a price target of $38, reflect negative sentiment. The upcoming merger with American Water Works (AWK) introduces uncertainty, and election-related affordability concerns may impact the company's rate cases and mergers. Additionally, no recent news or Congress trading data provides further support for a buy decision.
Financial Performance
In Q3 2025, Essential Utilities demonstrated strong financial performance with revenue increasing 9.58% YoY to $476.97M, net income up 32.67% YoY to $92.08M, and EPS rising 32.00% YoY to 0.33. However, gross margin decreased slightly by -2.03% YoY to 72.83%.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst sentiment is mixed to negative. Barclays recently downgraded the stock to Underweight with a $38 price target, citing untimely merger proceedings and affordability concerns. Northcoast upgraded the stock to Buy with a $42 price target earlier in December, but UBS downgraded it to Neutral in October following the merger announcement. Overall, the consensus reflects uncertainty and caution.
Wall Street analysts forecast WTRG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WTRG is 42.5 USD with a low forecast of 38 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast WTRG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WTRG is 42.5 USD with a low forecast of 38 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
4 Hold
1 Sell
Hold
Current: 38.100
Low
38
Averages
42.5
High
45
Current: 38.100
Low
38
Averages
42.5
High
45
Barclays
Nicholas Campanella
Overweight -> Underweight
downgrade
$43 -> $38
AI Analysis
2025-12-17
Reason
Barclays
Nicholas Campanella
Price Target
$43 -> $38
AI Analysis
2025-12-17
downgrade
Overweight -> Underweight
Reason
Barclays analyst Nicholas Campanella double downgraded Essential Utilities to Underweight from Overweight with a price target of $38, down from $43. The firm says that while water multiples de-rated in 2025, it continues to be negative on the group into 2026. Multiple state level merger proceedings and rate cases across Essential's portfolio are "un-timely" given election, mid-term and overall affordability considerations in 2026, the analyst tells investors in a research note.
Northcoast
Ryan Connors
Neutral -> Buy
upgrade
$42
2025-12-03
Reason
Northcoast
Ryan Connors
Price Target
$42
2025-12-03
upgrade
Neutral -> Buy
Reason
Northcoast analyst Ryan Connors upgraded Essential Utilities to Buy from Neutral with a $42 price target.
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