Selected Notes From Analysts On American Water Works Company Inc. (NYSE:AWK)

American Water Works Company Inc. (NYSE: AWK) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 1.5 points up or 1.25% higher on the previous close. So what do we make of this stock that is clearly one of the hottest on the market now? The AWK stock is trading at $121.59 from a close of $120.09 on 11/06/19. The day’s price range saw the stock hit a low of $120.32, while the highest price level was $122.06 during the intraday trading.

Is the AWK stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $124.17. American Water Works Company Inc. (NYSE: AWK) has a 52-week price range of between $85.89 and $129.89. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 1161702, compared to its 3-months daily average volume of 991.55K. In comparison, the average volume for the last 50 days stands at 1,021,364.

What about the stock’s price forecasts? AWK had 11 analysts who offered their 12-month price predictions for the American Water Works Company Inc. shares. Looking at the 52-week price ranges, the stock’s current price level is 41.56% from its 52-week high price and -6.39% down from its 52-week low in the same period.

American Water Works Company Inc. shares have surged 0.51% over the past week, but its 1-month performance is in the red at -1.85%. Its performance in the current quarter is up 1.83%, while that figure shoots to 14.41% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 37.84%, with the year-to-date prices up by 33.95%.

The company has a market cap of 22.07 billion and a return on assets (ROA) of 2.90%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with AWK’s at 10.60% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at 6.10%.

But what do Wall Street analysts tracking this stock recommend, given that it has 181.50 million shares outstanding? 11 analysts polled have a consensus recommendation rating of 3.50, indicating that AWK is a Hold stock at the moment. This mean rating was at 3.50 a month ago. BofA/Merrill called it a Underperform stock on July 15, 2019, while Wells Fargo rated it a Market Perform in its note released on March 27, 2019. Of the 11 analysts, 1 analysts rate the AWK stock as Overweight, while 5 of them rated it as a Hold. 3 analysts rate American Water Works Company Inc. as a Buy, while 1 suggested its Underweight. Only 1 analyst advised investors to sell.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of $0.69 per share to $0.8 per share. The average estimate by the 9 analysts for the AWK shares was $0.74 a share, while the company’s last-quarter results returned an EPS of $0.69. Looking at the current EPS trends, seven days ago, AWK had its Dec 2019 estimates at $0.74 per share while the stock’s EPS was forecasted at the $0.75, a month ago. However, the company’s EPS growth for this quarter stands at 7.20%, while that growth rate for the next fiscal quarter is forecasted at 19.70%. The annual earnings per share growth for the next five years is estimated to be 8.20%, which compares to the 5.92% recorded in the past five-year period.

Let’s briefly check out revenue growth estimates for the company, which is put at 3.00% in the current quarter. However, the next quarter should see net revenue growth of over 4.00%, with analysts forecasting the company’s 12-month growth estimates at 5.20%. 5 analysts have forecast that American Water Works Company Inc. will see its revenue growth net between $773.3 million and $908.08 million for the current quarter. The next quarter should see revenue returns of between $834 million and $868.07 million.The average revenue for the quarter is expected at $875.86 million, while for the next quarter, it jumps to $845.44 million. Sales growth for the year are estimated at 5.20%.