AWK · NYSE · STOCK
American Water Works (AWK) Stock Analysis
$135.42
52W $120.57 – $146.29
56/100
$26.91B
23.4
0.58
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is AWK Bullish or Bearish?
Bullish.
Innellis AI committee rates American Water Works (AWK) Buy with a composite score of 56/100
, based on 6 analysts with 50% agreement.
Last updated August 24, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +18.66 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -1.34 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Risk Analyst remains cautious — current ratio of 0.46 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
- MACD histogram negative -- bearish momentum — Technical
- Current ratio of 0.46 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 24, 2026
Overall Committee Score
56/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 17%
of 56 Utilities peers
Value Analyst
neutral
58
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
Growth Analyst
bullish
62
/ 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst
neutral
58
/ 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.46 is tight -- limited short-term liquidity cushion
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
60
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
Investment Thesis Evolution
Committee score moved marginally from 56.3 to 56.3.
Comparing 2026-08-23 to 2026-08-24 (1 day apart).
Technical Analysis
RSI (14)
48.0
Neutral
MACD Histogram
-0.056
Bearish Momentum
Trend Direction
Uptrend
Weekly: Sideways
Market Structure
Hh Hl
Support
$133.67
Resistance
$135.52
Bollinger %B
0.47
Inside Bands
Price vs Moving Averages
EMA 9
$136.15
Below
EMA 21
$135.28
Above
EMA 50
$133.30
Above
EMA 200
$132.51
Above
Fundamental Analysis
Valuation
51
Growth
69
Profitability
62
Financial Health
28
Cash Flow
15
Valuation
P/E Ratio
23.4×
P/B Ratio
2.27×
PEG Ratio
5.65
Dividend Yield
2.54%
52W High
$146.29
52W Low
$120.57
Quality & Growth
ROE
1025.2%
ROA
304.2%
Gross Margin
4719.9%
Operating Margin
3694.2%
Revenue Growth YoY
—
Debt / Equity
1.38
AI Fundamental Assessment
P/E ratio of 23.4 (inexpensive relative to a 15-40x range); Price-to-book of 2.3x; PEG ratio of 5.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 10.3%; Return on assets of 3.0%; Net margin of 21.3%; Gross margin of 47.2%; Current ratio of 0.52 (tight short-term liquidity); Debt-to-equity of 1.38; Free cash flow per share is negative (-5.26); Most recent quarter beat estimates by 3.4%; EPS growth accelerating (-17.3% -> +59.4% QoQ); Average YoY EPS growth of 8.8%; Analyst estimates rising over recent quarters
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