How High Will Aqua America Fly?http://www.fool.com/investing/general/2012/06/07/how-high-will-aqua-america-fly.aspx Alex Planes
June 7, 2012
Shares of Aqua America (NYSE: WTR ) hit a 52-week high yesterday. Let's look at how the company got there to find out whether clear skies remain on the horizon.
How it got here
Defensive stocks do well in downturns, and it's hard to get more defensive than a water utility. Aqua America's done fairly well over the past year, beating most in its moribund peer group. Only American Water Works (NYSE: AWK ) has done better domestically, but even a flat year would be better than the misery faced by shareholders in French utility conglomerate Veolia Environment (NYSE: VE ) :
Location matters, but it also doesn't help Veolia to be more diversified and more spread out than its American peers. Are these defensive stalwarts still good buys as the market starts to crack? Let's find out.
What you need to know