5 Best Water Stocks to Buy Now

4. American Water Works Company, Inc. (NYSE:AWK)

Number of Hedge Fund Holders: 29

American Water Works Company, Inc. (NYSE:AWK) is a New Jersey-based public utility company that provides water and wastewater services. The company has a headcount of over 6,400 employees.

American Water Works Company, Inc. (NYSE:AWK) is the biggest water utility company in the US. The company is on a growth path and has carried out more than 20 acquisitions since the start of 2021. Through one of its subsidiaries, American Water Works Company, Inc. (NYSE:AWK) also acquired Jefferson Utilities for $30 million in July. Not only is the company making acquisitions, but it is also improving its existing infrastructure by investing heavily in new technology. In May 2022, American Water Works Company, Inc. (NYSE:AWK) announced its plan to spend $3.4 million to upgrade its aging water pipelines in Pennsylvania.

American Water Works Company, Inc. (NYSE:AWK) outperformed earnings estimates for Q2 2022 as it reported an adjusted EPS of $1.20 compared to analysts’ forecast of $1.15. Meanwhile, for 2022, American Water Works Company, Inc. (NYSE:AWK) reiterated its EPS forecast of $4.39 to $4.49 as compared to the consensus forecast of $4.46. American Water Works Company, Inc.’s (NYSE:AWK) annual forward dividend stands at $2.62 per share as of August 24.

ClearBridge Investments shared its bullish outlook on American Water Works Company, Inc. (NYSE:AWK) in its Q2 2022 investor letter:

“We were active in positioning the portfolio during a volatile market, taking advantage of an attractive entry-point to buy American Water Works Company, Inc. (NYSE:AWK), which owns a high-quality regulated U.S. water utility portfolio, with above average EPS growth outlook driven by upgrade and expansion capex and tuck-in acquisitions.”