American Water Works is reaffirmed as a Buy, supported by robust EPS growth, financial stability, and moderate undervaluation. AWK's proposed merger with Essential Utilities (WTRG) could enhance scale, geographic reach, and credit profile while maintaining 7%-9% annual EPS growth targets. Shares trade at a 10% discount to fair value, with potential for 10%-11% annual total returns through 2030 if growth expectations are met.
American Water Works' unit, California American Water, further expands its operation in California through the acquisition of Yerba Buena Water Company.
In the prospering water supply industry, companies like AWK, WTRG and AWR are poised to benefit from their strong customer base and systematic investments that enable them to serve customers efficiently.
AWK posts strong Q3 results with higher revenues on the back of upbeat rate and announces merger agreement with Essential Utilities.
American Water Works (AWK) came out with quarterly earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.9 per share. This compares to earnings of $1.8 per share a year ago.
AWK's third-quarter earnings may reflect benefits from new rates, acquisitions and effective cost control initiatives.
American Water Works Company, Inc. (NYSE:AWK ) M&A Call October 27, 2025 8:30 AM EDT Company Participants John Griffith - CEO, President & Director Christopher Franklin - Chairman, President & CEO David Bowler - Executive VP & CFO Conference Call Participants Steven Fleishman - Wolfe Research, LLC Nicholas Campanella - Barclays Bank PLC, Research Division Agnieszka Storozynski - Seaport Research Partners Julien Dumoulin-Smith - Jefferies LLC, Research Division Gregg Orrill - UBS Investment Bank, Research Division Anthony Crowdell - Mizuho Securities USA LLC, Research Division Davis Sunderland - Robert W. Baird & Co. Incorporated, Research Division Presentation Operator Good morning, everyone.
American Water Works and Essential Utilities agreed to merge in an all-stock deal worth approximately $63 billion, including debt.
AWK is boosting resilience with new battery storage in California, replacing diesel generators and improving reliability.
Investors with an interest in Utility - Water Supply stocks have likely encountered both Veolia Environnement SA (VEOEY) and American Water Works (AWK). But which of these two stocks offers value investors a better bang for their buck right now?
American Water Works, a utility company that provides water and wastewater services in the IS, is now a $28 billion (by market cap) major water utility. AWK increased its dividend for 18 consecutive years, with a 10-year dividend growth rate of 9.5%. The company advanced its revenue from $3.2 billion in FY 2015 to $4.7 billion in FY 2024, a compound annual growth rate of 4.4%.
Investors looking for stocks in the Utility - Water Supply sector might want to consider either Veolia Environnement SA (VEOEY) or American Water Works (AWK). But which of these two stocks offers value investors a better bang for their buck right now?