Do Wall Street Analysts Like American Water Works Stock?

Core Viewpoint - American Water Works Company, Inc. (AWK) has shown underperformance compared to the broader market and specific water-related ETFs despite reporting stronger-than-expected earnings in Q3. Financial Performance - AWK reported Q3 operating revenue of $1.5 billion, a 9.7% increase year-over-year, exceeding consensus estimates by 9.8% [5] - Earnings per share (EPS) grew 7.8% from the previous year to $1.94, surpassing analyst expectations by 2.1% [5] - For the current fiscal year, analysts project AWK's EPS to grow 6.3% year-over-year to $5.73 [6] Market Comparison - Over the past 52 weeks, AWK shares have gained only 1.6%, while the S&P 500 Index has increased by 14.4% [2] - AWK has also underperformed the Invesco Global Water ETF (PIO), which rose 17.9% over the same period [3] Cost and Debt Concerns - Operating expenses increased by 7.3% year-over-year to $837 million, raising concerns among investors [5] - Total long-term debt rose by 4% to $13 billion [5] Analyst Ratings - Among 13 analysts covering AWK, the consensus rating is a "Hold," with two "Strong Buy," ten "Hold," and one "Strong Sell" ratings [6] - The configuration of analyst ratings has become less bullish compared to a month ago, with three analysts suggesting a "Strong Buy" [8] - Barclays PLC maintained a "Sell" rating on AWK with a price target of $122 [9]