American Water Works Stock Performance

AWK Stock  USD 132.39  4.02  3.13%   
The firm shows a Beta (market volatility) of -0.17, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning American Water are expected to decrease at a much lower rate. During the bear market, American Water is likely to outperform the market. At this point, American Water Works has a negative expected return of -0.035%. Please make sure to confirm American Water's total risk alpha, as well as the relationship between the skewness and day median price , to decide if American Water Works performance from the past will be repeated at some point in the near future.

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days American Water Works has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, American Water is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors. ...more

Actual Historical Performance (%)

One Day Return
3.78
Five Day Return
1.51
Year To Date Return
(1.50)
Ten Year Return
97.25
All Time Return
523.16
Forward Dividend Yield
0.0265
Payout Ratio
0.7409
Last Split Factor
2:1
Forward Dividend Rate
3.31
Dividend Date
2026-03-03
 
American Water dividend paid on 2nd of December 2025
12/02/2025
1
Pennsylvania American Water Proudly Recognizes 10 American Water Charitable Foundation State Strategic Impact Grantees
12/30/2025
2
Dont Let Salt Snowball Into a Big Problem
01/15/2026
3
Pennsylvania American Water Receives 6.1 Million in PENNVEST Funding for Infrastructure Improvement Projects in Berks and Cumberland Counties
01/22/2026
4
Pennsylvania American Water Urges Customers to Be Prepared during Sub-Freezing Weather
01/28/2026
5
American Water Works Company Valuation As Illinois Rate Increase Request Backs 577 Million Infrastructure Plan
01/29/2026
6
Acquisition by M Hardwick of 11545 shares of American Water subject to Rule 16b-3
02/03/2026
7
California American Water Announces New Southern California Principal of Business Development, Agatha Kotani
02/04/2026
8
Iowa American Water Announces Launch of 2026 American Water Charitable Foundation Water and Environment Grant Program
02/05/2026
9
Disposition of 3226 shares by John Griffith of American Water at 129.13 subject to Rule 16b-3
02/06/2026
10
American Water Joins Dialogue on Resilience, Affordability, Innovation and Reliability at 2026 NARUC Winter Policy Summit
02/09/2026
11
American Water to Post Q4 Earnings What to Expect From the Stock
02/11/2026
Begin Period Cash Flow364 M
Total Cashflows From Investing Activities-3.4 B

American Water Relative Risk vs. Return Landscape

If you would invest  13,179  in American Water Works on November 15, 2025 and sell it today you would lose (342.00) from holding American Water Works or give up 2.6% of portfolio value over 90 days. American Water Works is generating negative expected returns assuming volatility of 1.3405% on return distribution over 90 days investment horizon. In other words, 12% of stocks are less volatile than American, and above 99% of all equities are expected to generate higher returns over the next 90 days.
  Expected Return   
       Risk  
Considering the 90-day investment horizon American Water is expected to under-perform the market. In addition to that, the company is 1.73 times more volatile than its market benchmark. It trades about -0.03 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.13 per unit of volatility.

American Water Target Price Odds to finish over Current Price

The tendency of American Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
Current PriceHorizonTarget PriceOdds to move above the current price in 90 days
 132.39 90 days 132.39 
about 7.15
Based on a normal probability distribution, the odds of American Water to move above the current price in 90 days from now is about 7.15 (This American Water Works probability density function shows the probability of American Stock to fall within a particular range of prices over 90 days) .
Considering the 90-day investment horizon American Water Works has a beta of -0.17. This suggests as returns on the benchmark increase, returns on holding American Water are expected to decrease at a much lower rate. During a bear market, however, American Water Works is likely to outperform the market. Additionally American Water Works has an alpha of 0.0014, implying that it can generate a 0.001391 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   American Water Price Density   
       Price  

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
127.11128.45129.79
Details
Intrinsic
Valuation
LowRealHigh
121.79123.13141.21
Details
15 Analysts
Consensus
LowTargetHigh
126.22138.70153.96
Details
Earnings
Estimates (0)
LowProjected EPSHigh
1.511.531.55
Details

American Water Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. American Water is not an exception. The market had few large corrections towards the American Water's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold American Water Works, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of American Water within the framework of very fundamental risk indicators.
α
Alpha over Dow Jones
0
β
Beta against Dow Jones-0.17
σ
Overall volatility
2.41
Ir
Information ratio -0.06

American Water Alerts and Suggestions

In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of American Water for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for American Water Works can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.
American Water Works generated a negative expected return over the last 90 days
American Water Works has 14.11 B in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. American Water Works has a current ratio of 0.58, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Nevertheless, prudent borrowing could serve as an effective mechanism for American to finance growth opportunities yielding strong returns.
American Water Works has a strong financial position based on the latest SEC filings
Over 99.0% of American Water shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: American Water to Post Q4 Earnings What to Expect From the Stock

American Water Price Density Drivers

Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of American Stock often depends not only on the future outlook of the current and 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

American Water Fundamentals Growth

American Stock prices reflect investors' perceptions of the future prospects and financial health of American Water, and American Water fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Stock performance.

About American Water Performance

By examining American Water's fundamental ratios, stakeholders can obtain critical insights into American Water's financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that American Water is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
Last ReportedProjected for Next Year
Days Of Inventory On Hand 18.21  19.12 
Return On Tangible Assets 0.04  0.02 
Return On Capital Employed 0.07  0.05 
Return On Assets 0.04  0.02 
Return On Equity 0.12  0.09 

Things to note about American Water Works performance evaluation

Checking the ongoing alerts about American Water for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for American Water Works help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
American Water Works generated a negative expected return over the last 90 days
American Water Works has 14.11 B in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. American Water Works has a current ratio of 0.58, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Nevertheless, prudent borrowing could serve as an effective mechanism for American to finance growth opportunities yielding strong returns.
American Water Works has a strong financial position based on the latest SEC filings
Over 99.0% of American Water shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: American Water to Post Q4 Earnings What to Expect From the Stock
Evaluating American Water's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate American Water's stock performance include:
  • Analyzing American Water's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Water's stock is overvalued or undervalued compared to its peers.
  • Examining American Water's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating American Water's management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Water's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of American Water's stock. These opinions can provide insight into American Water's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating American Water's stock performance is not an exact science, and many factors can impact American Water's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
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 Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.
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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.
Quarterly Earnings Growth
0.081
Dividend Share
3.185
Earnings Share
5.63
Revenue Per Share
26
Quarterly Revenue Growth
0.097
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.