danwagnerco

SJW is a long swing trade opportunity AND a buy-and-hold

Long
NYSE:SJW   SJW Group
SJW Group offers at least 10% upside in the $62 range as of Friday March 26, 2021 and, thanks to steady dividend growth, would make a fine addition to your "buy and hold" portfolio.

Weaknesses
  • The commercial property SJW Land Company (subsidiary) owns in Tennessee are probably reeling due to COVID (no Annual Report available for 2020 yet)
  • Same for Chester Realty (subsidiary) in Connecticut as vacancies and business trends change
  • Overbilling "scandal" in 2017 for some San Jose-area residents
  • They run a "boring" business primarily as a water utility conglomerate in California, Texas, Connecticut, and Maine so new media-based surges in price are unlikely

Strengths
  • Passes my "OK Boomer" test with a dividend that has been increasing consistently for 16 years (ignore incorrect Q42017 data on Nasdaq's website, an extra dividend was paid after a subsidiary was sold)
  • Water utility subsidiaries are distributed on both coasts which limits natural disaster impacts
  • Price negatively impacted like many other companies during mid-February sell-off

All real estate details sourced from 2019 annual report.

TipRank
  • Only 3 Analysts covering SJW Group
  • Median price target $73.50

Chart
  • Price fell beneath the 200-Day SMA on February 25, 2021 as part of a larger sell-off trend
  • 5-Day EMA crossed the 20-Day SMA up on March 24, 2021 and the closing price continues to ramp up
  • RSI increased from 30 to 50 during last week's rally

Summary
Even using a conservative price target of $69 (below the median $73.50 TipRanks price target), SJW Group has about 10% upside based on the current price $62 range. As a "boomer" stock marching towards Dividend Aristocrat status in a "boring" industry, SJW could easily slide from your swing portfolio to your buy-and-hold portfolio.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.