Michael Gaugler, the utilities stock analyst who recently rejoined Janney Montgomery Scott, feels that water and gas companies in the Philadelphia area are a potentially lucrative investment option, writes Joseph N. DiStefano for Philly.com.

Gaugler predicts that despite the current low price of natural gas, the Marcellus Shale gas boom combined with neighboring fuel and liquid resources is a great investment opportunity.

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In addition, utility related companies that averaged 17 price-to-earnings ratio two years ago are reaching their premium-price levels as gas continues to displace other energy sources.

Janney’s clients are obviously finding value in his analysis, as Gaugler’s Utilities & Infrastructure Weekly is now one of its most popular investment publications.

However, while Gaugler does not advise bullish approach for all 25 of the mostly small water, gas, and electric utilities and firm he covers, the ones in the Philadelphia area are his favorites.

He has also given buy recommendations for Berwyn’s Ametek and Bryn Mawr’s Aqua America, which he believes will profit from Pennsylvania Utility Commission’s approval of pending rate hikes for next year. King of Prussia’s UGI is also included after its backing of the PennEast pipeline project.

Read more about Gaugler’s recommendations at Philly.com by clicking here.

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