American Water Works Stock Lags Despite Earnings Beat and Analyst Upgrades
American Water Works Company, Inc. (AWK), based in Camden, New Jersey, has seen its stock underperform the broader finance market in recent times. Despite a 4.2% year-to-date rise, AWK trails the S&P 500's 16.5% increase. Its market capitalization stands at $25.3 billion.
AWK's latest quarterly results, released on Oct. 29, saw its shares close down by 3.5%. However, earnings per share (EPS) of $1.94 surpassed Wall Street's expectations of $1.90. Looking ahead, analysts predict EPS growth of 6.3% to $5.73 for the current fiscal year on a diluted basis.
The company provides water and wastewater services to around 3.5 million active customers across 1,700 communities in 14 states. Despite this, AWK's shares have declined by 2% over the past year, while the S&P 500 Index (SPX) rallied nearly 14.5%.
Jefferies Financial Group Inc. (JEF) recently upgraded AWK to a 'Hold' rating with a price target of $124 on Nov. 5. This follows a previous upgrade by Jefferies without a specific price target. Among 15 analysts covering AWK stock, the consensus is a 'Hold', with three 'Strong Buy' ratings, 10 'Holds', one 'Moderate Sell', and one 'Strong Sell'.
American Water Works Company, Inc. (AWK) has experienced mixed performance, with recent upgrades from Jefferies and positive EPS surprises. However, its stock has lagged behind the broader stock market. As analysts predict EPS growth for the current fiscal year, investors await further developments to determine AWK's trajectory.
