How does York Water's earnings growth and margins compare to other regional water utilities?

Fundamentals:

York Water’s Q2 and six‑month results show a mid‑single‑digit earnings‑per‑share (EPS) growth versus the prior year, while its operating margin has held steady around the high‑30% range. This is above the average 30%‑32% margin reported by the larger regional peers such as American Water Works (AWK) and SJW Group, which have been constrained by higher capital‑expenditure cycles and modest EPS growth (≈3‑4%). York’s ability to lift earnings while preserving a premium margin suggests either a more efficient cost base or a modestly higher rate‑setting environment in its service territory.

Market & Technical Outlook:

The “water‑utility” sector has been in a defensive rally, with the NY Water Index (WTR) trading near its 200‑day moving average and showing a bullish 1‑month momentum. York’s stock (YORW) is currently trading 2–3% above its 20‑day moving average, a pattern typical of small‑cap utilities that are out‑performing peers on earnings momentum. Relative‑strength (RS) scores place YORW in the top 30% of the utility universe, indicating that the market is already pricing in the earnings upside.

Actionable Takeaway:

Given York’s stronger earnings growth and a margin edge over comparable regional utilities, the stock remains under‑weighted on a “buy‑on‑dip” basis. A pull‑back to the $30–$32 range (≈10%‑12% below the recent high) could offer a low‑risk entry with upside potential as the company continues to out‑perform peers and the broader utility sector remains supported by defensive flows. If the price breaks below the 20‑day moving average with volume, consider a tighter stop or a short‑position, as that would signal a shift in the sector’s defensive narrative.