10 Worst Performing Utilities Stocks to Buy According to Analysts

1) Global Water Resources, Inc. (NASDAQ:GWRS)

% Decline Over Past Year: ~10%

Average Upside Potential: ~50.0%

Number of Hedge Fund Holders: 4

Global Water Resources, Inc. (NASDAQ:GWRS) is a water resource management company, which is engaged in owning, operating, and managing regulated water, wastewater, and recycled water systems primarily in metropolitan Phoenix and Tucson, Arizona. The revenues generated by Global Water Resources, Inc. (NASDAQ:GWRS)’s water, wastewater, and recycled water service went up by 2.2%, mainly because of strong growth in connections and its scheduled rate increase. This includes a full quarter contribution from the company’s rate case approval for 7 of its regulated utilities in Pima County. The approval enables a revenue increase totaling ~$0.4 million annually. To provide a brief context, a rate case is referred to as the formal regulatory process where a utility company seeks approval from the Public Utilities Commission to change the rates the company charges.

Elsewhere, the company reached a unanimous settlement agreement related to the Global Water – Farmers Water Company, Inc. (GW-Farmers) general rate case application it filed with the Arizona Corporation Commission (ACC). This is the first rate case submitted for GW-Farmers since Global Water Resources, Inc. (NASDAQ:GWRS) acquired the utility in 2023. If approved, the new rates are projected to provide a revenue increase of ~$1.1 million on an annualized basis. The increase will be implemented in 3 stages: 50% on May 1, 2025, 25% on November 1, 2025, and 25% on May 1, 2026.

While we acknowledge the potential of GWRS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than GWRS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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