Sectors & IndustriesUtilitiesUtilities - Regulated Water

Best Water Stocks to Buy Now (2025)

Top water stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best water stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best water utility stocks to buy right now are:

Sabesp (NYSE:SBS) is the #1 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Sabesp (NYSE:SBS) is: Value: B, Growth: D, Momentum: B, Sentiment: B, Safety: B, Financials: C, and AI: B.

Sabesp (NYSE:SBS) has a Due Diligence Score of 44, which is 9 points higher than the water industry average of 35.

SBS passed 17 out of 38 due diligence checks and has strong fundamentals. Sabesp has seen its stock return 20.46% over the past year, overperforming other water stocks by 2 percentage points.

Artesian Resources (NASDAQ:ARTNA) is the #2 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Artesian Resources (NASDAQ:ARTNA) is: Value: C, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Artesian Resources (NASDAQ:ARTNA) has a Due Diligence Score of 21, which is -14 points lower than the water industry average of 35.

ARTNA passed 8 out of 38 due diligence checks and has weak fundamentals. Artesian Resources has seen its stock return 0.96% over the past year, underperforming other water stocks by -18 percentage points.

Aris Water Solutions (NYSE:ARIS) is the #3 top water stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Aris Water Solutions (NYSE:ARIS) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Aris Water Solutions (NYSE:ARIS) has a Due Diligence Score of 42, which is 7 points higher than the water industry average of 35.

ARIS passed 18 out of 38 due diligence checks and has strong fundamentals. Aris Water Solutions has seen its stock return 92.21% over the past year, overperforming other water stocks by 73 percentage points.

Aris Water Solutions has an average 1 year price target of $27.17, an upside of 4.85% from Aris Water Solutions's current stock price of $25.91.

Aris Water Solutions stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Aris Water Solutions, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 9 water stocks that have issued dividends in the past year, the 3 water stocks with the highest dividend yields are:

Essential Utilities (NYSE:WTRG) has an annual dividend yield of 3.18%, which is 1 percentage points higher than the water industry average of 2.06%. Essential Utilities's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Essential Utilities's dividend has shown consistent growth over the last 10 years.

Essential Utilities's dividend payout ratio of 59.4% indicates that its dividend yield is sustainable for the long-term.

Global Water Resources (NASDAQ:GWRS) has an annual dividend yield of 2.47%, which is the same as the water industry average of 2.06%. Global Water Resources's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Global Water Resources's dividend has shown consistent growth over the last 10 years.

Global Water Resources's dividend payout ratio of 125.8% indicates that its dividend yield might not be sustainable for the long-term.

California Water Service Group (NYSE:CWT) has an annual dividend yield of 2.32%, which is the same as the water industry average of 2.06%. California Water Service Group's dividend payout is stable, having never dropped by more than 10% in the last 10 years. California Water Service Group's dividend has shown consistent growth over the last 10 years.

California Water Service Group's dividend payout ratio of 36.2% indicates that its dividend yield is sustainable for the long-term.

Water stocks were up 1.09% in the last day, and up 4.31% over the last week.

We couldn't find a catalyst for why water stocks are up.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued water stocks right now are:

Sabesp (NYSE:SBS) is the most undervalued water stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Sabesp has a valuation score of 57, which is 29 points higher than the water industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Sabesp's stock has gained 20.46% in the past year. It has overperformed other stocks in the water industry by 2 percentage points.

Artesian Resources (NASDAQ:ARTNA) is the second most undervalued water stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Artesian Resources has a valuation score of 43, which is 15 points higher than the water industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Artesian Resources's stock has gained 0.96% in the past year. It has underperformed other stocks in the water industry by -18 percentage points.

Sjw Group (NASDAQ:SJW) is the third most undervalued water stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Sjw Group has a valuation score of 43, which is 15 points higher than the water industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Sjw Group's stock has gained 3.9% in the past year. It has underperformed other stocks in the water industry by -15 percentage points.

57.14% of water stocks rated by analysts are a buy right now. On average, analysts expect water stocks to fall by -0.91% over the next year.

0% of water stocks have a Zen Rating of A (Strong Buy), 0% of water stocks are rated B (Buy), 78.57% are rated C (Hold), 21.43% are rated D (Sell), and 0% are rated F (Strong Sell).