Now that the most important event of the year, the Federal Reserve (the Fed) interest rate cuts, is over, investors wonder where their capital can be safely treated in the face of potential volatility in the coming months. To satisfy this need to keep a stable portfolio, a decent weight in low beta stocks, characterized by smaller average daily moves compared to the S&P 500 index, is called for.
Investors interested in stocks from the Utility - Water Supply sector have probably already heard of Veolia Environnement SA (VEOEY) and American Water Works (AWK). But which of these two companies is the best option for those looking for undervalued stocks?
American Water Works (NYSE:AWK) announced that its 3rd quarter earnings and guidance for 2025 will be released on October 30th, followed by a conference call and webcast for investors the morning after.
AWK, with rising earnings estimates, long-term investments and contribution from organic and acquired assets, makes a strong case for investment.
Water utilities, AWK, SBS, AWR and SJW, are likely to benefit from stable demand for water and wastewater services. Capital-intensive utilities are set to gain from interest rate cuts.
After rate cut, investment in stocks from rate-sensitive spaces such as, fintech, utility and home building should be prudent. Five such stocks are - PYPL, FIS, AWK, OGE, MHO.
The Fed has reduced interest rates after four years. Top-ranked utilities, NGG, AWK and EVRG, with long-term investment plans, are likely to gain from the same.
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 presents investors with the better value opportunity right now?
Five utility stocks likely to benefit from September rate cut expectation are: NI, DTE, AWK, XEL, EVRG.
Water utilities like American Water Works, American States Water and SJW Group continue to invest to strengthen their infrastructures and efficiently serve customers.
Utility stocks like AWK, AWR, EVRG and OGE are safe bets during times of market volatility.
AWK continues to expand its operations through the acquisition of water and wastewater assets in the United States.