Stock Analysis | American Water Works Outlook - Technical Weakness and Mixed Analyst Signals

Generated by AI AgentAinvest Stock Digest
Saturday, Aug 23, 2025 4:30 am ET1min read
AWK
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Aime RobotAime Summary

- American Water Works (AWK) shows weak technical outlook (3.47) but mixed fundamentals (3.13), advising caution.

- Analyst ratings are split (3 neutral, 1 strong buy) despite 0.45% stock price rise and 11.94% YoY revenue growth.

- Positive sector drivers include Iowa rate approval and Google's NC water partnership, while Yorkshire's £350k fine highlights operational risks.

- Mixed investor flows (50.99% small-cap inflow vs 50.45% large-cap outflow) contrast with bearish technical signals (WR Overbought 1.44).

- Weak technical trends and dispersed analyst views suggest waiting for clearer market direction before investing in AWK.

Market Snapshot

Takeaway:

American Water Works
(AWK) is currently showing a weak technical outlook with a score of 3.47 and is advised to be avoided, while fundamentals score 3.13.

News Highlights

Recent news includes a rate increase approval for Iowa American Water Company and Google's water sustainability partnership in North and South Carolina, which may positively influence the water sector. On the other hand, Yorkshire Water was fined £350,000 for a sewage leak, which could raise concerns about operational risks in the industry.

Analyst Views & Fundamentals

The simple average analyst rating is 3.50, while the performance-weighted rating is 3.10. Analyst ratings show some dispersion with three neutral and one strong buy ratings. These scores generally align with the stock's recent 0.45% price rise.

  • Operating Revenue YoY Growth: 11.94% (Score: 0)
  • EV/EBIT: 65.61 (Score: 2)
  • Inventory Turnover Ratio: 8.94 (Score: 2)
  • Gross Profit Margin (GPM): 62.38% (Score: 2)
  • Profit-Market Value (Profit-MV): -69.26% (Score: 2)
  • Non-Current Assets / Total Assets: 95.87% (Score: 0)
  • Gross Margin (GMAR): 62.38% (Score: 2)
  • Cost of Sales Ratio: 39.21% (Score: 1)
  • Inventory Turnover Days: 20.13 (Score: 0)

Money-Flow Trends

American Water Works has seen mixed money flows. While small investors showed a positive trend with 50.99% inflow ratio, large and extra-large investors showed negative inflow trends at 50.45% and 44.58%, respectively. The fund-flow score is 7.82, indicating good inflow activity overall.

Key Technical Signals

Recent technical indicators reveal a mixed picture with more bearish signals than bullish ones. For example, the Ex-Dividend Date and Dividend Record Date on August 12, 2025, are strong bullish indicators with internal diagnostic scores of 8.13 each. On the bearish side, the WR Overbought and MACD Golden Cross have scores of 1.44 and 1.00 respectively. The overall technical trend is weak, and investors are advised to avoid the stock.

Conclusion

With a weak technical outlook and mixed analyst ratings, investors should approach American Water Works with caution. Given the current dynamics and the mixed signals from both fundamentals and technicals, it might be prudent to wait for a clearer trend or a pull-back before making any investment decisions.

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