American Water Works (AWK) stock Investment Analysis
Deciding whether American Water Works (AWK) stock is worth investing in depends on several factors, including your personal financial situation, investment goals, risk tolerance, and the current market conditions. Here are a few points to consider based on the information provided:
1. Analyst Ratings: As of May 14, 2024, UBS has maintained a neutral rating for AWK, adjusting the target price to $139.00 from $124.00. This suggests that the stock is expected to perform in line with the market. Meanwhile, JPMorgan had previously upgraded AWK from underweight to neutral, with a target price of $165.00. These ratings indicate that analysts see potential for moderate growth but do not expect outstanding performance.
2. Company Overview: American Water Works Company, Inc. is one of the largest publicly traded water and wastewater utility companies in the United States. Founded in 1886, the company serves millions of customers across the country. Its long history and stable operations in a necessary sector (water and wastewater services) can make it an attractive option for investors seeking stability and regular dividends.
3. Sector Performance: The water utility sector is generally considered defensive, meaning it tends to perform relatively well during economic downturns. However, it may not offer the same level of growth as more cyclical sectors during economic expansions.
Who owns American Water Works Company, Inc.?
Shareholders: American Water Works Company, Inc.
4、At about $28 billion in market value, American Water Works is among the largest publicly traded utilities that deal with water services. For years, water issues have plagued the American West in states like California and Arizona, but the impact of climate change is increasingly putting pressure on communities around the nation to figure out safe and reliable sources of water. AWK has deep expertise, serving roughly 1,700 communities across 14 states with about 3.5 million active customers. What’s more, it has an above-average dividend and a history of outperformance versus the S&P 500.