American Water Stock Target Price and Analyst Consensus

AWK Stock  USD 119.26  0.74  0.62%   
The current analyst and expert consensus on American Water is Buy with 7 hold recommendations. The current projected American Water target price consensus is 149.80 with 14 analyst opinions. One of the most common ways American Water Works analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to American Water vendors, executives, and/or customers. American Water recommendation module provides expert sentiment on the projected American Water Works target price to derive its highest and lowest estimates based on target price standard deviation of 0.0. Check out Macroaxis Advice on American Water to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
Lowest Forecast
136.32
Highest Forecast
166.28
Target Price
149.8
At this time, American Water's Operating Profit Margin is quite stable compared to the past year. Net Profit Margin is expected to rise to 0.23 this year, although the value of Gross Profit will most likely fall to about 1.3 B. At this time, American Water's Retained Earnings are quite stable compared to the past year. Cash is expected to rise to about 346.5 M this year, although the value of Common Stock Shares Outstanding will most likely fall to about 137.7 M.
  
It's important to approach American Water's target price projections with caution. While they can be useful as part of a broader investment strategy, they are inherently speculative and subject to various kinds of risk, including market volatility and unforeseen external factors. Always consider multiple aspects and do your own research when making investment decisions.
Analysts determine stock price targets through various methods, including financial modeling, peer comparison, and company analysis. The stock price target is the analyst's best estimate of the future price of a stock and is used by investors to make investment decisions. However, it is important to note that stock price targets are not guaranteed, and the actual price of a stock can differ significantly from the target due to various factors such as market conditions, economic events, and company developments.

Steps to utilize American Water price targets

American Water's stock target price is an estimate of its future price, usually made by analysts. Using American Water's target price to determine if it is a suitable investment can be done through the following steps:
  • Look at American Water's target prices provided by various analysts and compare them. This can help you gain a more balanced view of the Stock's potential.
  • Look at the analyst's track record to determine if they have a history of accurately predicting stock prices.
  • Look at the Company's financials, including revenue, earnings, and debt, to determine if it is in good financial health.
  • Consider market conditions. For example, take into account the state of the economy, competition, and regulatory environment, to determine if American Water's stock is likely to perform well.
  • Diversify your portfolio and do not rely solely on stock target prices to make investment decisions. Invest in a mix of stocks, bonds, and other assets to manage risk.
Remember that stock target prices are just estimates and are subject to change. Therefore, using them as one factor in a larger investment strategy is essential rather than relying solely on them to make decisions.

Additional American Water Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of American Water is a key component of American Water valuation and have some predictive power on the future returns of a American Water.
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
117.96119.28120.60
Details
Intrinsic
Valuation
LowRealHigh
107.33134.57135.89
Details
Earnings
Estimates (0)
LowProjected EPSHigh
0.940.991.05
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as American Water. Your research has to be compared to or analyzed against American Water's peers to derive any actionable benefits. When done correctly, American Water's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in American Water Works.

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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 Macroaxis Advice on American Water to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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The data published in American Water's official financial statements usually reflect American Water's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of American Water Works. For example, before you start analyzing numbers published by American accountants, it's critical to develop an understanding of what American Water's liquidity, profitability, and earnings quality are in the context of the Water Utilities space in which it operates.
Please note, the presentation of American Water's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Water's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in American Water's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of American Water Works. Please utilize our Beneish M Score to check the likelihood of American Water's management manipulating its earnings.