CWT vs. AWK: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the Utility - Water Supply sector should consider California Water Service Group (CWT) and American Water Works (AWK), with CWT appearing more attractive for value investors due to its stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - CWT has a forward P/E ratio of 18.95, while AWK has a forward P/E of 24.05, indicating that CWT is potentially undervalued compared to AWK [5]. - The PEG ratio for CWT is 2.16, compared to AWK's PEG ratio of 3.25, suggesting that CWT offers better value when considering expected earnings growth [5]. - CWT's P/B ratio is 1.62, while AWK's P/B ratio is 2.51, further supporting the notion that CWT is more attractively priced [6]. Zacks Rank and Style Scores - CWT currently holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while AWK has a Zacks Rank of 4 (Sell) [3]. - The Style Score Value grade for CWT is B, whereas AWK has a Value grade of D, highlighting CWT's superior valuation metrics [6]. Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, CWT is positioned as the superior option for value investors compared to AWK [7].