Trade-Ideas LLC identified

American Water Works

(

AWK

) 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 $74.1 million.
  • AWK has traded 171,064 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 operates through two segments, Regulated Businesses and Market-Based Operations. The stock currently has a dividend yield of 2.3%. AWK has a PE ratio of 23. Currently there are 10 analysts that rate American Water Works a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for American Water Works has been 910,100 shares per day over the past 30 days. American Water Works has a market cap of $10.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.38 and a short float of 1.4% with 1.79 days to cover. Shares are up 11.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Water Works as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. 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:

  • AWK's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMERICAN WATER WORKS CO INC has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. 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 $2.39 versus $2.07 in the prior year. This year, the market expects an improvement in earnings ($2.63 versus $2.39).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Water Utilities industry average. The net income increased by 14.3% when compared to the same quarter one year prior, going from $152.19 million to $173.89 million.
  • Net operating cash flow has increased to $437.62 million or 12.31% 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 7.45%.
  • The gross profit margin for AMERICAN WATER WORKS CO INC is rather high; currently it is at 52.72%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.40% trails the industry average.

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