Is American Water Works Stock Underperforming the Nasdaq?

Company Overview - American Water Works Company, Inc. (AWK) has a market cap of $25.1 billion and serves approximately 3.5 million customers across 14 states, providing water and wastewater services [1][2] - The company operates extensive infrastructure, including treatment plants, wells, pumping stations, storage facilities, and thousands of miles of mains, catering to residential, commercial, industrial, and public sector clients [1] Stock Performance - AWK shares have declined 17.4% from their 52-week high of $155.50, and over the past three months, the shares have dipped 8.3%, underperforming the Nasdaq Composite's gain of over 8% during the same period [3] - Year-to-date, AWK stock is up 3.2%, lagging behind the Nasdaq's return of 21.9%, and has dropped nearly 3% over the past 52 weeks compared to the Nasdaq's increase of 18.6% [4] Financial Results - In Q3 2025, AWK reported an EPS of $1.94 and revenue of $1.45 billion, which were better than expected; however, shares fell 2.6% the following day due to concerns over rising costs and leverage [5] - Operating expenses increased by 7.3% to $837 million, and long-term debt rose by 4% to $13.02 billion [5] Analyst Sentiment - Analysts are cautious about AWK's prospects, with a consensus rating of "Hold" from 14 analysts, and a mean price target of $143.91, indicating a 12% premium to current levels [6]