American Water Works: Good Upside Potential

BI Insights
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Summary

  • American Water Works is expected to benefit from investments in acquisition & capital expenditure.
  • The wastewater business should provide additional upside to revenue growth.
  • Considering, growth prospects along with lower than historical P/E ratio, I have a buy rating on this stock.

Flowing Water - Liquid, Freshness, Horizontal Movement, Bright

DKosig

Investment Thesis

American Water Works Company (NYSE:AWK) is expected to generate increased revenue and earnings per share (EPS) year-over-year in FY2023. This positive trajectory should be driven by strategic investments in acquisitions and capital expenditure (CAPEX) within its Regulated business. Moreover, the opportunity to expand

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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