RHTrading

AWK: Invest In Companies You Literally Cannot Live Without

Long
BATS:AWK   American Water Works Company, Inc.
American Water Works Co (AWK) Trade Idea.

American Water Works is the largest investor-owned us water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.

  • Narrow moat, standard allocation, and low FV uncertainty.
  • Valuations have come back down to earth. Morningstar displays a four-star price-to-fair-value.
  • The business cycle is late-stage, and playing defense makes sense.
  • Technicals are interesting.

Risks include sequential dilutions until 2027. A lack of growth could also be a disappointment for some investors with unrealistic expectations. Greenblue quant report also displays a low score of 957. But relative to the utilities sector, AWK is the 7th best.




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