American Water Stock Forward View

AWK Stock  USD 128.37  4.68  3.78%   
American Stock outlook is based on your current time horizon.
As of now the relative strength index (rsi) of American Water's share price is below 20 . This suggests that the stock is significantly oversold. The fundamental principle of the Relative Strength Index (RSI) is to quantify the velocity at which market participants are driving the price of a financial instrument upwards or downwards.

Momentum 0

 Sell Peaked

 
Oversold
 
Overbought
The successful prediction of American Water's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with American Water Works, which may create opportunities for some arbitrage if properly timed.
Using American Water hype-based prediction, you can estimate the value of American Water Works from the perspective of American Water response to recently generated media hype and the effects of current headlines on its competitors.
The Naive Prediction forecasted value of American Water Works on the next trading day is expected to be 124.04 with a mean absolute deviation of 1.47 and the sum of the absolute errors of 89.80.

American Water after-hype prediction price

    
  USD 128.3  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Check out Historical Fundamental Analysis of American Water to cross-verify your projections.

American Water Additional Predictive Modules

Most predictive techniques to examine American price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for American using various technical indicators. When you analyze American charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
A naive forecasting model for American Water is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of American Water Works value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

American Water Naive Prediction Price Forecast For the 13th of February 2026

Given 90 days horizon, the Naive Prediction forecasted value of American Water Works on the next trading day is expected to be 124.04 with a mean absolute deviation of 1.47, mean absolute percentage error of 3.32, and the sum of the absolute errors of 89.80.
Please note that although there have been many attempts to predict American Stock prices using its time series forecasting, we generally do not suggest using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that American Water's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

American Water Stock Forecast Pattern

Backtest American Water  American Water Price Prediction  Research Analysis  

American Water Forecasted Value

In the context of forecasting American Water's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. American Water's downside and upside margins for the forecasting period are 122.71 and 125.38, respectively. We have considered American Water's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
128.37
122.71
Downside
124.04
Expected Value
125.38
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of American Water stock data series using in forecasting. Note that when a statistical model is used to represent American Water stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria119.3101
BiasArithmetic mean of the errors None
MADMean absolute deviation1.4721
MAPEMean absolute percentage error0.0114
SAESum of the absolute errors89.7953
This model is not at all useful as a medium-long range forecasting tool of American Water Works. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict American Water. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for American Water

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as American Water Works. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Water's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
126.97128.30129.63
Details
Intrinsic
Valuation
LowRealHigh
123.06124.39141.21
Details

American Water After-Hype Price Density Analysis

As far as predicting the price of American Water at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in American Water or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of American Water, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

American Water Estimiated After-Hype Price Volatility

In the context of predicting American Water's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on American Water's historical news coverage. American Water's after-hype downside and upside margins for the prediction period are 126.97 and 129.63, respectively. We have considered American Water's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models compare with traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
128.37
126.97
Downside
128.30
After-hype Price
129.63
Upside
American Water is very steady at this time. Analysis and calculation of next after-hype price of American Water Works is based on 3 months time horizon.

American Water Stock Price Outlook Analysis

Have you ever been surprised when a price of a Company such as American Water is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Water backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with American Water, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.02 
1.33
 0.00  
 0.00  
0 Events / Month
4 Events / Month
In 5 to 10 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
128.37
128.30
0.05 
0.00  
Notes

American Water Hype Timeline

On the 12th of February 2026 American Water Works is traded for 128.37. The entity stock is not elastic to its hype. The average elasticity to hype of competition is 0.0. American is anticipated to decline in value after the next headline, with the price expected to drop to 128.3. The average volatility of media hype impact on the company price is insignificant. The price depreciation on the next news is expected to be -0.05%, whereas the daily expected return is presently at -0.02%. The volatility of related hype on American Water is about 2660.0%, with the expected price after the next announcement by competition of 128.37. About 99.0% of the company shares are held by institutions such as insurance companies. The book value of American Water was presently reported as 55.9. The company has Price/Earnings To Growth (PEG) ratio of 2.44. American Water Works recorded earning per share (EPS) of 5.63. The entity last dividend was issued on the 10th of February 2026. The firm had 2:1 split on the 26th of July 1996. Considering the 90-day investment horizon the next anticipated press release will be in 5 to 10 days.
Check out Historical Fundamental Analysis of American Water to cross-verify your projections.

American Water Related Hype Analysis

Having access to credible news sources related to American Water's direct competition is more important than ever and may enhance your ability to predict American Water's future price movements. Getting to know how American Water's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how American Water may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
FTSFortis Inc 0.03 10 per month 0.56  0.08  1.48 (1.17) 4.38 
EBR-BCentrais Eltricas Brasileiras 0.00 0 per month 6.03  0.08  7.76 (9.71) 31.49 
SOSouthern Company 0.00 0 per month 1.00 (0.03) 1.54 (1.81) 4.07 
EBRCentrais Electricas Brasileiras(0.02)5 per month 4.49  0.09  2.80 (3.23) 32.39 
CNPCenterPoint Energy 0.00 0 per month 0.89  0.01  1.65 (1.67) 3.57 
FEFirstEnergy(0.20)11 per month 0.80  0.04  1.65 (1.31) 4.07 
AEEAmeren Corp 0.09 8 per month 0.94  0  1.46 (1.45) 4.20 
DTEDTE Energy 0.00 0 per month 1.04 (0.02) 1.36 (1.48) 3.27 
CMSCMS Energy(0.40)9 per month 1.03 (0.05) 1.31 (1.37) 4.16 
PPLPPL Corporation 0.00 0 per month 1.21 (0.06) 1.58 (1.61) 4.62 

Other Forecasting Options for American Water

For every potential investor in American, whether a beginner or expert, American Water's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. American Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in American. Basic forecasting techniques help filter out the noise by identifying American Water's price trends.

American Water Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with American Water stock to make a market-neutral strategy. Peer analysis of American Water could also be used in its relative valuation, which is a method of valuing American Water by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

American Water Market Strength Events

Market strength indicators help investors to evaluate how American Water stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Water shares will generate the highest return on investment. By undertsting and applying American Water stock market strength indicators, traders can identify American Water Works entry and exit signals to maximize returns.

American Water Risk Indicators

The analysis of American Water's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in American Water's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting american stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Story Coverage note for American Water

The number of cover stories for American Water depends on current market conditions and American Water's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that American Water is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about American Water's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

American Water Short Properties

American Water's future price predictability will typically decrease when American Water's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of American Water Works often depends not only on the future outlook of the potential American Water's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. American Water's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding195 M
Cash And Short Term Investments196 M
When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:
Check out Historical Fundamental Analysis of American Water to cross-verify your projections.
You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive American Water assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Investors evaluate American Water Works using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating American Water's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause American Water's market price to deviate significantly from intrinsic value.
Understanding that American Water's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether American Water represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, American Water's market price signifies the transaction level at which participants voluntarily complete trades.