American Water Works Company, Inc. (AWK), headquartered in Camden, New Jersey, provides water and wastewater services to approximately 1,700 communities in 14 states, serving approximately 3.5 million active customers. Valued at $25.3 billion by market cap, the company operates an extensive infrastructure of wastewater treatment plants, pipelines, wells, dams, storage facilities, and more.
Shares of this water utility giant have underperformed the broader market over the past year. AWK has declined 2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.5%. In 2025, AWK stock is up 4.2%, compared to SPX’s 16.5% rise on a YTD basis.
Narrowing the focus, AWK’s underperformance is also apparent compared to the Global X Clean Water ETF (AQWA). The exchange-traded fund has gained about 8.9% over the past year. Moreover, the ETF’s 16.4% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Oct. 29, AWK shares closed down by 3.5% after reporting its Q3 results. Its EPS of $1.94 beat Wall Street expectations of $1.90. The company’s revenue was $1.5 billion, topping Wall Street forecasts of $1.3 billion.
For the current fiscal year, ending in December, analysts expected AWK’s EPS to grow 6.3% to $5.73 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 15 analysts covering AWK stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 10 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is less bearish than a month ago, with two analysts suggesting a “Moderate Sell.”
On Nov. 5, Jefferies Financial Group Inc. (JEF) upgraded AWK to a “Hold” rating with a price target of $124.
The mean price target of $143.91 represents a 10.9% premium to AWK’s current price levels. The Street-high price target of $160 suggests an upside potential of 23.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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