Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. 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 $35.4 million.
- AWK has traded 14,179 shares today.
- AWK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AWK with the Ticky from Trade-Ideas. See the FREE profile for AWK NOW at Trade-Ideas 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's Regulated Businesses segment offers water and wastewater services to approximately 1,500 communities in 16 states. The stock currently has a dividend yield of 2.7%. AWK has a PE ratio of 22.6. Currently there are 13 analysts that rate American Water Works a buy, no analysts rate it a sell, and none rate it a hold. The average volume for American Water Works has been 731,700 shares per day over the past 30 days. American Water Works has a market cap of $8.3 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.14 and a short float of 0.6% with 1.32 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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, expanding profit margins, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these 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 6.4%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 44.90% is the gross profit margin for AMERICAN WATER WORKS CO INC which we consider to be strong. 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 8.38% trails the industry average.
- AMERICAN WATER WORKS CO INC has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN WATER WORKS CO INC reported lower earnings of $2.06 versus $2.11 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus $2.06).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Water Utilities industry. The net income increased by 7.6% when compared to the same quarter one year prior, going from $55.48 million to $59.69 million.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full American Water Works Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.