American Water Works Stock Outlook: Is Wall Street Bullish or Bearish?

Company Overview - American Water Works Company, Inc. (AWK) is headquartered in Camden, New Jersey, providing water and wastewater services to approximately 1,700 communities across 14 states, serving around 3.5 million active customers. The company has a market capitalization of $25.3 billion and operates an extensive infrastructure including wastewater treatment plants, pipelines, wells, dams, and storage facilities [1]. Stock Performance - AWK shares have underperformed the broader market over the past year, declining by 2%, while the S&P 500 Index has increased by nearly 14.5%. Year-to-date, AWK stock is up 4.2%, compared to a 16.5% rise in the S&P 500 [2]. - Compared to the Global X Clean Water ETF (AQWA), which gained about 8.9% over the past year and 16.4% year-to-date, AWK's performance has been less favorable [3]. Q3 Financial Results - On October 29, AWK reported its Q3 results, with an EPS of $1.94, surpassing Wall Street expectations of $1.90. The company's revenue reached $1.5 billion, exceeding forecasts of $1.3 billion [4]. Earnings Expectations - For the current fiscal year ending in December, analysts expect AWK's EPS to grow by 6.3% to $5.73 on a diluted basis. The company's earnings surprise history is mixed, having beaten consensus estimates in three of the last four quarters while missing once [5]. Analyst Ratings - Among the 15 analysts covering AWK stock, the consensus rating is a "Hold," consisting of three "Strong Buy" ratings, ten "Holds," one "Moderate Sell," and one "Strong Sell" [5]. - The analyst outlook has improved slightly, with two analysts suggesting a "Moderate Sell" a month ago. On November 5, Jefferies Financial Group upgraded AWK to a "Hold" rating with a price target of $124. The mean price target of $143.91 indicates a 10.9% premium to current price levels, while the highest price target of $160 suggests an upside potential of 23.3% [6].