Essential Utilities Stock Tests Key Resistance After Recent High

Shares of Essential Utilities are consolidating following their recent ascent to a 52-week peak of $42.37. The stock concluded Friday's session at $41.21, registering a minor decline of 0.22%. This pause in momentum raises questions about the equity's near-term trajectory as it navigates critical technical levels.

Market participants are looking toward the company's forthcoming financial results, scheduled for release on November 4, which cover the third quarter of fiscal 2025. These figures are highly anticipated, building upon a robust second-quarter performance where the company significantly surpassed projections. The previous quarter reported earnings per share (EPS) of $0.38, comfortably exceeding the $0.29 consensus estimate. Revenue reached $514.91 million, a figure that not only beat the expected $462.70 million but also represented a substantial 18.5% year-over-year increase.

For the full 2025 fiscal year, management has provided EPS guidance in the range of $2.07 to $2.11. This outlook is notably more optimistic than the average analyst forecast, which sits at $1.99.

Analyst Sentiment Remains Upbeat

Despite the recent slight pullback, the prevailing sentiment among market researchers is decidedly positive. The consensus price target from analysts is $45.17, suggesting a potential upside of nearly 10% from current levels.

Recent analyst actions underscore this confidence:
* Jefferies reaffirmed its "Buy" recommendation and raised its price target to $47 from $43.
* Barclays increased its target to $43 from $42, maintaining an "Overweight" stance.
* Zacks Research has given the shares a "Strong Buy" rating.

Should investors sell immediately? Or is it worth buying Essential Utilities?

A more cautious "Hold" rating is maintained by Weiss Ratings. Meanwhile, Wall Street Zen recently shifted its position, upgrading the stock from "Sell" to "Hold."

Technical Picture Suggests Caution

From a chart perspective, the signals are mixed, advising investors to proceed with care. The stock has declined 1.72% since a pivot top signal was identified on October 20. Furthermore, the 3-month Moving Average Convergence Divergence (MACD) indicator is currently flashing a sell signal.

Key technical levels to watch include:
* 50-day moving average: $39.25
* 200-day moving average: $38.71
* Immediate resistance: $41.49
* Immediate support: $39.32

The critical question for traders is whether the stock can muster the strength to break through the $41.49 resistance barrier. A successful breach could pave the way for a renewed attempt to challenge its all-time high. The direction of this next significant move will likely be determined by the upcoming quarterly earnings report.