This Utility Stock is a Solid Bet for a Fragile Economy

UtilityUtilities typically perform well in times of economic uncertainty. Water is an essential utility that is seeing high demand during the Coronavirus Pandemic. With surface cleaning and strict hygiene practices recommended during the health crisis, demand is likely to remain strong for as long as COVID-19 is a threat. American Water Works Co. (NYSE: AWK) is a stock that can be used to leverage the unique conditions of today, and it has fundamentals that should support it in the long term.

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American Water Works has generated mild but consistent revenue growth for five consecutive years. In 2019, revenue was up by 4.94%. Gross income was up by 6.30%, contributing to an impressive gross margin of 41.11%. Profitability is high with an EBITDA margin of 49.47%.

The company expects earnings per share in a range of $3.85 to $3.95 this year. The annual long-term earnings per share growth rate is expected to be between 7% and 10% per year. This is good news for investors interested in growth and income. The dividend is reliable, which is important in an unstable economy.

The stock is currently outperforming its target price and has momentum in 2020, making it one of the best utility picks today.

Key Data:

  • 1 Year Price Growth: 17%
  • YTD Price Growth: 48%
  • 3 Month Price Growth: 78%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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