American Water Works Company, Inc.’s (AWK) strategic capital investments to strengthen infrastructure and improve reliability are likely to boost its performance. Given its growth opportunities, rising earnings estimates make AWK a solid investment option in the utility sector.The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.Growth Projections & Surprise History The Zacks Consensus Estimate for 2024 and 2025 earnings per share (EPS) has increased 0.6% ...

On Sept. 18, the Fed reduced the benchmark interest rate by 50 basis points to the range of 4.75-5%. This marked the first rate cut since March 2020. Despite an aggressive rate cut, Wall Street ended in negative territory as market participants were concerned that the big rate cut was a move by the central bank to protect the economy from an imminent recession.In contrast, on Sept. 19, U.S. stock markets witnessed an impressive rebound following a strong labor market data. Investors seem convinced that the ...

The U.S. Federal Reserve has finally lowered the benchmark rate by 50 basis points, bringing down rates to a range of 4.75%-5% from the 5.25%-5.5% range. The rates were lowered for the first time in four years, much in line with the expectations of the financial market.Capital-intensive domestic-focused utilities will benefit from the Fed’s decision to reduce interest rates. The performance of the rate-regulated utilities remains steady through different economic cycles, and it allows them to reward shareho ...

Wall Street is keenly waiting for the outcome of the Fed’s most crucial FOMC meeting scheduled Sept. 17-18. Market participants are highly enthusiastic about the beginning of the low interest rate and accommodative monetary regime. The CME FedWatch tool currently shows a 100% probability of a 25-basis-point rate cut along with a 35% chance of a 50-basis-point rate cut this month.  Under this scenario, the utility sector is in focus. Utility operations are capital-intensive, as consistent investments are req ...

文章核心观点 - 水务行业公司在过去三个月内表现优于行业,如American Water Works Company (AWK)、American States Water Company (AWR)和SJW Group (SJW)等公司 [1] - 美国水基础设施老化,需要大规模维修和升级,以确保提供可靠的服务 [2] - 水务行业高度分散,小型服务商可能缺乏资金实力进行基础设施升级,大型水务公司通过并购来拓展业务并投资改善被收购资产 [3] - 如果美联储今年降息,将有助于水务公司以更低的成本为基础设施项目或并购活动融资 [3] 公司总结 American Water Works [5] - 总部位于新泽西州卡姆登,为数百万美国人提供水和污水服务 - 计划在2024年投资31亿美元,2024-2028年投资160-170亿美元,以加强和扩展现有基础设施 - 过去3个月股价上涨12.6%,股息收益率2.13%,过去4个季度平均盈利惊喜1.11%,2024年预测盈利上调0.4%至5.26美元 American States Water [6] - 总部位于加州圣迪马斯,提供水、污水和电力服务 - 为军事基地提供长期水和污水服务,并继续争取更多军事基地的长期合同 - 计划在2025-2027年投资5.731亿美元 - 过去3个月股价上涨15.4%,股息收益率2.30%,过去4个季度平均盈利惊喜3.43%,2024年预测盈利上调0.7%至3.03美元 SJW Group [6][7][8] - 总部位于加州圣何塞,为客户提供水务服务 - 寻求水务和污水系统并购以支持其增长潜力 - 计划在未来3年内投资5.4亿美元于水务和污水基础设施,以向客户提供安全可靠的服务 - 过去3个月股价上涨13.1%,股息收益率2.72%,过去4个季度平均盈利惊喜9.3%,2024年预测盈利上调0.4%至2.76美元

Volatility has returned to Wall Street, disrupting the solid rebound that followed a massive selloff in early August. The recent stock market volatility is being triggered by fears over the economy’s health rekindled by disappointing jobs data.Also, September, over the years, has proven to be one of the worst months for stocks. Given this situation, it would be safe to invest in utility stocks like American Water Works Company, Inc. (AWK) , American States Water Company (AWR) , Evergy, Inc. (EVRG) and OGE E ...

American Water Works (AWK) announced that its unit Indiana American Water (“INAW”) has received approval from the Indiana Utility Regulatory Commission for the acquisition of Silver Creek Water Corporation for $45 million.This acquisition is expected to close in mid-November and add 8,000 water customers to INAW’s portfolio. Indiana American Water has been making strategic acquisitions to expand its operations and customer base. In 2023, INAW acquired Claypool Water System in Northern Indiana and Sunset Vil ...

American Water Works Company, Inc.’s (AWK) unit, New Jersey American Water, has been granted new water and wastewater rates by the New Jersey Board of Public Utilities, effective from Sep. 15, 2024. This rate hike is likely to increase the company’s annual revenues by approximately $79.5 million.The company's request was filed in January 2024 as it wanted to recover infrastructure investment costs of more than $1.3 billion. This includes upgrades in the treatment system and distribution networks.Rate Hike - ...

Wall Street retreated from its earlier highs to start a tricky September as disappointing economic data rekindled fears of a slowing economy. Although the Federal Reserve has indicated that rate cuts are on the anvil, a slowing manufacturing sector continues to keep investors worried about the economy’s health.Given this situation, it would be wise to invest in defensive stocks like utilities and consumer staples such as American Water Works Company, Inc. (AWK) , NiSource Inc. (NI) , Evergy, Inc. (EVRG) , U ...

Although inflation in the United States seems to be cooling, the rate remains stubbornly high, still above the Federal Reserve’s target of below 2%.Despite the decline, concerns persist that inflation is not yet entirely under control, prompting investors to seek assets that can offer protection. In this line, specific stocks, though not currently market dominants, provide this investment option amid inflation fears. Therefore, Finbold turned to OpenAI’s latest artificial intelligence (AI) tool, ChatGPT-4o, ...