American Water Works' (AWK) subsidiary, New Jersey American Water, has completed its acquisition of the water system of Shrewsbury Township's Alfred Vail Mutual Association community. This purchase, which serves 265 customer connections, followed the approval of the New Jersey Department of Community Affairs and the New Jersey Board of Public Utilities. This is the second acquisition in the State of New Jersey to be completed through the Water Infrastructure Protection Act ("WIPA"). As part of the deal, New ...

Core Insights - The market has experienced volatility due to tariff discussions, impacting leading stocks negatively [1] - Targeting low-beta stocks can help investors balance their risk profiles during such volatility [1][6] - The Progressive Corp. (PGR) and American Water Works (AWK) are highlighted as potential 'defensive' additions [1][6] Company Performance - PGR shares have increased over 20% in 2025, significantly outperforming the S&P 500 [3] - PGR has consistently exceeded Zacks Consensus EPS estimates by an average of 18.5% over the last four quarters [3] - PGR currently has a Zacks Rank of 2 (Buy) with rising earnings expectations [3] - PGR offers a modest annual yield of 0.2%, appealing to investors despite not being a primary target for income-focused strategies [4] AWK Performance - AWK shares have gained 14% in 2025, contrasting with a 14% decline in the S&P 500 [5] - AWK exceeded both consensus EPS and sales expectations in its latest quarterly results [5] - The company reaffirmed its previous guidance, contributing to positive investor sentiment [5] - AWK provides a stronger income option with a current annual yield of 2.2% and an 8.8% five-year annualized dividend growth rate [5][7]

Buying and holding a stock over the long term requires conviction that the company will live up to investor expectations.For growth stocks, that can mean unlocking the potential of a paradigm-shifting technology. In contrast, investors may expect dividend-paying companies to steadily boost their earnings and payouts over time, rewarding them with a one-two punch of passive income and capital gains.Here's why Lockheed Martin (LMT -4.81%), American Water Works (AWK -3.06%), and Watsco (WSO -2.98%) stand out a ...

As you can see on the chart below, the last three times it reached levels around $148.00, it reversed and sold off. This may be about to happen again, which is why we have made it our Stock of the Day. Shares of American Water Works Company, Inc. AWK are trading higher on Monday. But that may not be the case for much longer. There is a chance the stock reverses and heads lower. Now that the shares have returned to around $148.00, remorseful buyers will place sell orders once more, which could create resista ...

Company Performance - American Water Works (AWK) has outperformed the Utilities sector with a year-to-date return of approximately 14.5%, compared to the sector average of 2.4% [4] - The Zacks Consensus Estimate for AWK's full-year earnings has increased by 0.3% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - AWK belongs to the Utility - Water Supply industry, which has seen an average gain of about 11.9% this year, further highlighting AWK's strong performance within its specific industry [5] Industry Comparison - The Utilities sector, which includes 104 individual stocks, currently holds a Zacks Sector Rank of 7 out of 16 sector groups [2] - Another stock in the Utilities sector, Southwest Gas (SWX), has returned 3.9% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5] - The Utility - Gas Distribution industry, which includes Southwest Gas, has experienced a decline of -9.4% since the beginning of the year, contrasting with the performance of the Utility - Water Supply industry [6]

Market Overview - The S&P 500 lost 3.1%, the Dow Jones fell about 2.4%, and the Nasdaq Composite retreated 3.5%, marking the worst week for the S&P 500 since September 2024 [1] - The Nasdaq officially entered correction territory, defined as a 10% decline from recent highs [1] Employment Data - Nonfarm payrolls increased by 151,000 in February, falling short of economists' expectations of 170,000, while the unemployment rate rose to 4.1% [2] Trade Policy Impact - Market turmoil was driven by concerns over trade policy, particularly President Trump's tariff announcements, which created uncertainty despite exemptions for goods from Canada and Mexico under the USMCA until April 2 [3] - Glen Smith, CIO at GDS Wealth Management, noted that the market does not favor uncertainty and anticipates continued market volatility until trade uncertainties are resolved [4] Economic Outlook - Treasury Secretary Scott Bessent acknowledged a potential loss of economic momentum but attributed it to a transition from previous policies, assuring that any tariff-related price increase would be a one-time adjustment [5] Winning Stocks in a Down Market - Erie Indemnity (ERIE) saw an 11.1% increase last week, operating in the property/casualty insurance business and ranked in the top 21% of its industry [7] - Jack Henry & Associates (JKHY) increased by 6.8%, providing technology solutions to community banks and ranked in the top 21% of its industry [8] - Charter Communications (CHTR) rose by 6.7%, serving approximately 30.1 million customers in 41 states as the second-largest cable operator in the U.S. [9] - Gilead Sciences (GILD) also increased by 6.7%, known for its drugs for HIV and other diseases, ranked in the top 21% of its industry [10] - American Water Works (AWK) rose by 3.1%, providing essential water services to over 14 million customers and ranked in the top 38% of its sector [11]

Core Viewpoint - American Water Works Company Inc. (AWK) is positioned as a strong investment option in the utility sector due to rising earnings estimates, long-term investment plans, and growth opportunities [1] Earnings Projections & Growth Rate - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 0.4% to $5.71 over the past 60 days, while the 2026 EPS estimate is $6.13, reflecting a 0.3% increase [2] - AWK's long-term earnings growth rate is projected at 8.3% over the next three to five years [3] Systematic Investments & Rate Hikes - AWK plans to invest $3.3 billion in 2025 to enhance its water and wastewater infrastructure, with total planned investments of $17-$18 billion from 2025-2029 and $40-$42 billion from 2025-2034 [4] - Rate hikes implemented as of January 1, 2024, are expected to add $373 million to annual revenues in 2024, with further increases of $129 million in 2025 and a potential additional $178 million from pending rate cases [5] Dividend History - AWK has a strong track record of increasing shareholder value through dividends, currently paying a quarterly dividend of 76.50 cents per share, equating to an annualized payout of $3.06 [7] - The company anticipates a long-term dividend increase of 7-9%, subject to board approval, with a current dividend yield of 2.22% [7] Solvency - The time-to-interest earned ratio at the end of Q4 2024 was 3.6, indicating AWK's capability to meet future interest obligations comfortably [8] Expansion Through Acquisition & Organic Initiatives - In 2023, AWK added 18,100 customers through 23 acquisitions across eight states, and in 2024, it completed 13 acquisitions, adding 69,500 customers [9] - Pending acquisitions as of January 1, 2025, are expected to add another 24,200 customers, demonstrating the company's commitment to expanding its customer base [10] Price Performance - Over the past year, AWK's stock has increased by 16.7%, outperforming the industry growth of 9.4% [11]

Company Overview - American Water Works (AWK) currently holds a Momentum Style Score of B, indicating a positive outlook based on momentum investing principles [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, AWK shares have increased by 2.48%, while the Zacks Utility - Water Supply industry has decreased by 0.15% [6] - In a longer time frame, AWK's monthly price change is 11.45%, outperforming the industry's 5.48% [6] - Over the last quarter, AWK shares have risen by 5.84%, and they are up 16.5% over the past year, compared to the S&P 500's performance of -5.43% and 13.83%, respectively [7] Trading Volume - AWK's average 20-day trading volume is 1,583,557 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for AWK have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.69 to $5.71 [10] - For the next fiscal year, three estimates have moved upwards, with one downward revision noted [10] Conclusion - Given the positive price trends, trading volume, and earnings outlook, AWK is positioned as a strong momentum pick and is recommended for consideration in investment strategies [12]

Core Viewpoint - The article discusses the performance of low-beta stocks during recent market volatility, highlighting The Progressive Corp. (PGR), Sony (SONY), and American Water Works (AWK) as defensive investment options due to their positive earnings outlook and favorable Zacks Ranks [1][16]. Group 1: The Progressive Corp. (PGR) - PGR shares have increased over 20% in 2025, significantly outperforming the S&P 500, driven by strong quarterly results [3]. - The company is expected to achieve 7% EPS growth on 16% higher sales in the current fiscal year [3]. - Net premiums earned, a key revenue driver, grew 20% year-over-year in the latest quarter, indicating strong momentum [4]. - PGR shares yield a modest 0.1% annually, appealing more to growth-focused investors rather than income-focused ones [6]. Group 2: Sony (SONY) - SONY shares have also risen over 20% in 2025, outperforming the market, with positive post-earnings movement despite missing consensus expectations [7]. - The company has upgraded its profit guidance, maintaining a favorable outlook for the current fiscal year, and holds a Zacks Rank 1 (Strong Buy) [7]. - SONY offers a 1.9% annual dividend yield, with a 24% five-year annualized dividend growth rate, making it attractive for income-seeking investors [8]. Group 3: American Water Works (AWK) - AWK shares have gained 13% in 2025, contrasting with a decline in the S&P 500, following strong quarterly results that exceeded EPS and sales expectations [9]. - The company reaffirmed its previous guidance, contributing to a positive outlook [12]. - AWK has a current annual yield of 2.2%, nearly double that of the S&P 500, with an 8.8% five-year annualized dividend growth rate [12].

Company Overview - American Water Works (AWK) is one of 104 companies in the Utilities group, currently ranked 5 within the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Performance Analysis - Over the past three months, the Zacks Consensus Estimate for AWK's full-year earnings has increased by 0.3%, reflecting improving analyst sentiment [4] - AWK has returned 6.6% year-to-date, outperforming the average return of 4.6% for Utilities companies [4] - In comparison, AWK is slightly underperforming its industry, the Utility - Water Supply, which has gained an average of 6.7% so far this year [6] Industry Context - The Utility - Water Supply industry, which includes 12 stocks, is currently ranked 88 in the Zacks Industry Rank [6] - Another stock in the Utilities sector, NRG Energy (NRG), has shown a year-to-date return of 17.5% and has a Zacks Rank of 1 (Strong Buy) [5][7] - The Utility - Electric Power industry, to which NRG belongs, is ranked 86 and has moved up by 4.5% this year [7]