Is American Water Works Stock Underperforming the S&P 500?

Company Overview - American Water Works Company, Inc. (AWK) is based in Camden, New Jersey, and provides water and wastewater services in the United States, with a market cap of $27.2 billion [1] - The company operates over 80 surface water treatment plants, more than 520 groundwater treatment plants, and over 190 wastewater treatment plants [1] Market Position - AWK is classified as a large-cap stock, reflecting its substantial size and influence in the regulated water utility industry [2] Stock Performance - AWK stock has declined 11.5% from its two-year high of $155.50 reached on April 4, and has dropped 2.7% over the past three months, underperforming the S&P 500 Index, which surged 10.7% during the same period [3] - Year-to-date, AWK stock has gained 10.5% but has dropped 7.1% over the past 52 weeks, lagging behind the S&P 500's 12.5% surge in 2025 and 17.6% gains over the past year [4] Financial Results - Following the release of mixed Q2 results on July 30, AWK's stock prices saw a marginal uptick; operating revenues for the quarter increased 11.1% year-over-year to $1.3 billion, exceeding expectations by 10.5% [5] - The company's EPS for the quarter rose 4.2% year-over-year to $1.48, missing consensus estimates by 1 cent [5] Peer Comparison - Compared to its peer, Essential Utilities, Inc. (WTRG), AWK has outperformed in 2025 with a gain of 10.5% versus WTRG's 4.1% [6] - However, AWK underperformed WTRG's 3.9% decline over the past year [6] Analyst Ratings - Among 14 analysts covering AWK stock, the consensus rating is a "Hold," with a mean price target of $143.10, indicating a modest 4% upside potential from current price levels [6]