Market Overview - Volatility has returned to Wall Street, disrupting the rebound following a significant selloff in early August, primarily due to fears over the economy's health triggered by disappointing jobs data [1][2] - September has historically been one of the worst months for stocks, which may prolong market volatility [4] Jobs Data Impact - The weak jobs data released indicated that private payrolls added only 99,000 jobs in August, the smallest increase since January 2021, and significantly below the consensus estimate of 145,000 [2] - Following the jobs report, the Dow declined by 0.5% and the S&P 500 shed 0.3%, marking the third consecutive session of decline for the S&P 500 [2] Manufacturing Sector - The manufacturing sector has been struggling, with the Institute for Supply Management (ISM) reporting a manufacturing PMI of 47.2 in August, indicating contraction as it is below the neutral level of 50 [3] - Higher borrowing costs have increased raw material costs and reduced demand in the manufacturing sector [3] Federal Reserve and Inflation - Inflation has decreased sharply but remains above the Federal Reserve's target of 2%, with expectations of a 25-basis-point rate cut this month [3] - The Federal Reserve has not yet clarified the magnitude or number of rate cuts planned for the year [3] Defensive Investment Recommendations - Given the current market conditions, investing in utility stocks is recommended as they are considered defensive in nature [1][5] - Suggested utility stocks include: - **American Water Works Company, Inc. (AWK)**: Expected earnings growth rate of 7.4%, beta of 0.69, and a dividend yield of 2.12% [6][7] - **American States Water Company (AWR)**: Expected earnings growth rate of 6.3%, beta of 0.49, and a dividend yield of 2.29% [9] - **Evergy, Inc. (EVRG)**: Expected earnings growth rate of 8.8%, beta of 0.62, and a dividend yield of 4.27% [11] - **OGE Energy Corp. (OGE)**: Expected earnings growth rate of 3.4%, beta of 0.74, and a dividend yield of 4.27% [14]

American Water Works (AWK) announced that its unit Indiana American Water (“INAW”) has received approval from the Indiana Utility Regulatory Commission for the acquisition of Silver Creek Water Corporation for $45 million.This acquisition is expected to close in mid-November and add 8,000 water customers to INAW’s portfolio. Indiana American Water has been making strategic acquisitions to expand its operations and customer base. In 2023, INAW acquired Claypool Water System in Northern Indiana and Sunset Vil ...

Core Viewpoint - American Water Works Company, Inc. (AWK) is set to increase its annual revenues by approximately $79.5 million due to new water and wastewater rates approved by the New Jersey Board of Public Utilities, effective September 15, 2024, aimed at recovering over $1.3 billion in infrastructure investment costs [1][2]. Group 1: Rate Hike and Infrastructure Investment - The aging water supply system necessitates regular investments for upgrades and maintenance to ensure long-term growth, with water rate hikes supporting these strategic investments [2]. - AWK plans to invest $3.1 billion in 2024, with a total investment range of $16-$17 billion for the 2024-2028 period and $34-$38 billion for the 2024-2033 period, focusing on infrastructure improvements [3]. - The introduction of the Universal Affordability Tariff aims to provide discounts for income-eligible customers, enhancing affordability [2]. Group 2: Industry Investment Needs - The U.S. Environmental Protection Agency estimates that $625 billion is needed for drinking water and $271 billion for wastewater pipeline maintenance and expansion over the next 20 years [3]. - Other water utilities, such as SJW Group, American States Water Company, and California Water Service Group, are also planning significant capital investments to strengthen their infrastructure [3]. Group 3: Performance and Earnings - AWK shares have increased by 10.9% over the past three months, outperforming the industry growth of 9.4% [6]. - AWK currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [8].

Wall Street retreated from its earlier highs to start a tricky September as disappointing economic data rekindled fears of a slowing economy. Although the Federal Reserve has indicated that rate cuts are on the anvil, a slowing manufacturing sector continues to keep investors worried about the economy’s health.Given this situation, it would be wise to invest in defensive stocks like utilities and consumer staples such as American Water Works Company, Inc. (AWK) , NiSource Inc. (NI) , Evergy, Inc. (EVRG) , U ...

Although inflation in the United States seems to be cooling, the rate remains stubbornly high, still above the Federal Reserve’s target of below 2%.Despite the decline, concerns persist that inflation is not yet entirely under control, prompting investors to seek assets that can offer protection. In this line, specific stocks, though not currently market dominants, provide this investment option amid inflation fears. Therefore, Finbold turned to OpenAI’s latest artificial intelligence (AI) tool, ChatGPT-4o, ...

American Water Works (AWK) has announced that its unit, Illinois American Water, completed the construction of a groundwater treatment plant last month. The company invested $10.9 million to construct the groundwater treatment plant on the site of the original water treatment plant, which utilized the Ohio River as the source of water supply. Switching to groundwater is in the customers’ best interest, as approved by the U.S. Environmental Protection Agency (“EPA”), Illinois EPA and Illinois Commerce Commis ...

It has been about a month since the last earnings report for American Water Works (AWK) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is American Water Works due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. American Water’s Q2 Earning ...

These dividend stocks look like compelling buys right now.The stock market has set several new all-time highs this year. Because of that, most stocks are up sharply, which is leaving fewer bargains.However, there are a few stocks that still look like great deals. American Water Works (AWK 0.29%), Enbridge (ENB 1.59%), and Clearway Energy (CWEN 1.67%) (CWEN.A 1.65%) stand out to three Fool.com contributors right now because of their compelling investment potential. However, that might not last, which is why ...

Are you starting to get nervous about the frothy stock market and thinking about taking some profits off the table? You’re not alone. With the economy flashing warning signs and many high-flying tech names coming back down to earth, it might be time to consider shifting some of your portfolio into recession-resistant stocks.Last week was a bloodbath for many market darlings, and fear is still gripping investors. Frankly, I believe this fear is justified. Unemployment is ticking up, job growth is slowing and ...

It’s an asset and resource that we use everyday and therefore, we become desensitized to its importance. But water really is the golden ticket for the future of global societies and economies. Life on this planet cannot exist without it. And therefore, its management and stewardship are incredibly critical. By logical deduction, investors jittery about present market dynamics should consider the best water stocks to buy.Relevance doesn’t guarantee upside, let me just be clear about that point. Water-related ...