Core Insights - The market has experienced volatility due to tariff discussions, impacting leading stocks negatively [1] - Targeting low-beta stocks can help investors balance their risk profiles during such volatility [1][6] - The Progressive Corp. (PGR) and American Water Works (AWK) are highlighted as potential 'defensive' additions [1][6] Company Performance - PGR shares have increased over 20% in 2025, significantly outperforming the S&P 500 [3] - PGR has consistently exceeded Zacks Consensus EPS estimates by an average of 18.5% over the last four quarters [3] - PGR currently has a Zacks Rank of 2 (Buy) with rising earnings expectations [3] - PGR offers a modest annual yield of 0.2%, appealing to investors despite not being a primary target for income-focused strategies [4] AWK Performance - AWK shares have gained 14% in 2025, contrasting with a 14% decline in the S&P 500 [5] - AWK exceeded both consensus EPS and sales expectations in its latest quarterly results [5] - The company reaffirmed its previous guidance, contributing to positive investor sentiment [5] - AWK provides a stronger income option with a current annual yield of 2.2% and an 8.8% five-year annualized dividend growth rate [5][7]

Buying and holding a stock over the long term requires conviction that the company will live up to investor expectations.For growth stocks, that can mean unlocking the potential of a paradigm-shifting technology. In contrast, investors may expect dividend-paying companies to steadily boost their earnings and payouts over time, rewarding them with a one-two punch of passive income and capital gains.Here's why Lockheed Martin (LMT -4.81%), American Water Works (AWK -3.06%), and Watsco (WSO -2.98%) stand out a ...

As you can see on the chart below, the last three times it reached levels around $148.00, it reversed and sold off. This may be about to happen again, which is why we have made it our Stock of the Day. Shares of American Water Works Company, Inc. AWK are trading higher on Monday. But that may not be the case for much longer. There is a chance the stock reverses and heads lower. Now that the shares have returned to around $148.00, remorseful buyers will place sell orders once more, which could create resista ...

Company Performance - American Water Works (AWK) has outperformed the Utilities sector with a year-to-date return of approximately 14.5%, compared to the sector average of 2.4% [4] - The Zacks Consensus Estimate for AWK's full-year earnings has increased by 0.3% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - AWK belongs to the Utility - Water Supply industry, which has seen an average gain of about 11.9% this year, further highlighting AWK's strong performance within its specific industry [5] Industry Comparison - The Utilities sector, which includes 104 individual stocks, currently holds a Zacks Sector Rank of 7 out of 16 sector groups [2] - Another stock in the Utilities sector, Southwest Gas (SWX), has returned 3.9% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5] - The Utility - Gas Distribution industry, which includes Southwest Gas, has experienced a decline of -9.4% since the beginning of the year, contrasting with the performance of the Utility - Water Supply industry [6]

Wall Street was downbeat last week, with the S&P 500 losing 3.1%, the Dow Jones shedding about 2.4% and the Nasdaq Composite retreating 3.5%.  The S&P 500 recorded its worst week since September 2024. SPDR S&P 500 ETF Trust (SPY) lost 3.4% in the week. The Nasdaq officially entered correction territory — defined as a 10% decline from recent highs.Weak Jobs Report Adds to ConcernsInvestors largely shrugged off a weaker-than-expected February jobs report, which briefly pushed Treasury yields lower. Nonfarm pa ...

Core Viewpoint - American Water Works Company Inc. (AWK) is positioned as a strong investment option in the utility sector due to rising earnings estimates, long-term investment plans, and growth opportunities [1] Earnings Projections & Growth Rate - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 0.4% to $5.71 over the past 60 days, while the 2026 EPS estimate is $6.13, reflecting a 0.3% increase [2] - AWK's long-term earnings growth rate is projected at 8.3% over the next three to five years [3] Systematic Investments & Rate Hikes - AWK plans to invest $3.3 billion in 2025 to enhance its water and wastewater infrastructure, with total planned investments of $17-$18 billion from 2025-2029 and $40-$42 billion from 2025-2034 [4] - Rate hikes implemented as of January 1, 2024, are expected to add $373 million to annual revenues in 2024, with further increases of $129 million in 2025 and a potential additional $178 million from pending rate cases [5] Dividend History - AWK has a strong track record of increasing shareholder value through dividends, currently paying a quarterly dividend of 76.50 cents per share, equating to an annualized payout of $3.06 [7] - The company anticipates a long-term dividend increase of 7-9%, subject to board approval, with a current dividend yield of 2.22% [7] Solvency - The time-to-interest earned ratio at the end of Q4 2024 was 3.6, indicating AWK's capability to meet future interest obligations comfortably [8] Expansion Through Acquisition & Organic Initiatives - In 2023, AWK added 18,100 customers through 23 acquisitions across eight states, and in 2024, it completed 13 acquisitions, adding 69,500 customers [9] - Pending acquisitions as of January 1, 2025, are expected to add another 24,200 customers, demonstrating the company's commitment to expanding its customer base [10] Price Performance - Over the past year, AWK's stock has increased by 16.7%, outperforming the industry growth of 9.4% [11]

Company Overview - American Water Works (AWK) currently holds a Momentum Style Score of B, indicating a positive outlook based on momentum investing principles [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, AWK shares have increased by 2.48%, while the Zacks Utility - Water Supply industry has decreased by 0.15% [6] - In a longer time frame, AWK's monthly price change is 11.45%, outperforming the industry's 5.48% [6] - Over the last quarter, AWK shares have risen by 5.84%, and they are up 16.5% over the past year, compared to the S&P 500's performance of -5.43% and 13.83%, respectively [7] Trading Volume - AWK's average 20-day trading volume is 1,583,557 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for AWK have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.69 to $5.71 [10] - For the next fiscal year, three estimates have moved upwards, with one downward revision noted [10] Conclusion - Given the positive price trends, trading volume, and earnings outlook, AWK is positioned as a strong momentum pick and is recommended for consideration in investment strategies [12]

It’s been a volatile couple of weeks in the market, with tariff talks spooking investors and causing negative price action in many of the leading stocks.But investors can help balance out their risk profiles by targeting low-beta stocks, helping during intense volatility spikes like we’ve recently witnessed.Three low-beta stocks, namely The Progressive Corp. (PGR) , Sony (SONY) , and American Water Works (AWK) , could all be seen as ‘defensive’ additions.All three have also enjoyed positive earnings estimat ...

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is American Water Works (AWK) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.American Water Works is one of 104 companies in the Utilities group. The Utilities group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges th ...

Financial Data and Key Metrics Changes - Consolidated reported earnings were $5.39 per share in 2024, an increase of $0.49 per share compared to 2023, reflecting an 8% EPS growth [25][26][19] - Earnings in 2024 benefited from $0.12 per share due to favorable weather and $0.09 per share from incremental interest income [16][25] - Operating costs increased by $0.22 per share, primarily due to employee-related costs and other growth-related expenses [26] Business Line Data and Key Metrics Changes - The company invested over $3 billion in 2024 to support infrastructure investments and customer service [17][18] - Nearly 70,000 customer connections were added through acquisitions, meeting the 2% compounded annual growth target [18][51] Market Data and Key Metrics Changes - The company operates across 14 states, benefiting from regulatory diversity and a low-risk business model [20][38] - The average residential water bill is expected to remain at or below 1% of median household income throughout the ten-year plan [50] Company Strategy and Development Direction - The company is focused on a capital investment program aimed at infrastructure renewal, with a long-term rate base growth target of 8% to 9% [20][49] - The company plans to achieve consistent EPS growth within the 7% to 9% range through 2029 and beyond [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing plans for 2025 and beyond, emphasizing the importance of addressing aging infrastructure and water quality challenges [22][22] - The company remains committed to providing safe, clean, and reliable services while maintaining affordability for customers [55][50] Other Important Information - Susan Hardwick announced her retirement effective May 14, 2025, with John Griffith set to succeed her as CEO [7][8] - The company has a strong balance sheet with a total debt to capital ratio of 57%, well within the target of less than 60% [38] Q&A Session Summary Question: Changes in strategy regarding PFAS investments - Management confirmed no changes to capital plans related to PFAS, emphasizing the need to meet regulatory requirements [63] Question: Should the $0.10 from loan remarketing be included in EPS growth models? - Management advised to exclude the $0.10 from the base EPS growth calculations [65] Question: Details on acquisition capabilities and growth - Management highlighted the addition of staffing in business development to enhance growth across multiple states [72][74] Question: Disruptions in procurement for capital projects - Management reported no disruptions in procurement, maintaining a robust supply chain for capital investments [84] Question: Update on the Missouri rate case - Management expressed optimism about reaching a settlement prior to the start of hearings in Missouri [94] Question: Impact of economic development on customer growth - Management noted that while there are opportunities for growth, water demand remains stable with excess capacity in the industry [98] Question: Consideration of hybrid financing options - Management indicated that hybrids are not seen as cost-effective compared to traditional equity financing [105] Question: Update on Missouri legislative efforts - Management is actively working to improve the regulatory environment in Missouri, focusing on future test year legislation [128]