American Water Works (AWK) Hits New Lifetime High
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Water Works as such a stock due to the following factors:
- AWK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $143.1 million.
- AWK has traded 27,130 shares today.
- AWK is trading at a new lifetime high.
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More details on AWK:
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada. The company offers water and wastewater services to approximately 1,600 communities in 16 states. The stock currently has a dividend yield of 1.8%. AWK has a PE ratio of 31. Currently there are 5 analysts that rate American Water Works a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for American Water Works has been 1.3 million shares per day over the past 30 days. American Water Works has a market cap of $14.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.25 and a short float of 3.8% with 3.55 days to cover. Shares are up 37.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates American Water Works as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $247.00 million or 24.35% when compared to the same quarter last year. In addition, AMERICAN WATER WORKS CO INC has also modestly surpassed the industry average cash flow growth rate of 15.45%.
- AMERICAN WATER WORKS CO INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERICAN WATER WORKS CO INC increased its bottom line by earning $2.63 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $2.63).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Water Utilities industry average. The net income increased by 2.4% when compared to the same quarter one year prior, going from $80.04 million to $82.00 million.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.81% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full American Water Works Ratings Report.
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