Here’s Why American Water Works (AWK) Surged in Q1

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US large-cap equity fell in the quarter following the uncertainty surrounding US tariffs. In the first quarter of 2025, the fund underperformed the Russell 1000 benchmark. Negative stock selection and lack of energy exposure led to the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as American Water Works Company, Inc. (NYSE:AWK). American Water Works Company, Inc. (NYSE:AWK) is a water and wastewater services provider in the United States. The one-month return of American Water Works Company, Inc. (NYSE:AWK) was -4.51%, and its shares gained 6.29% of their value over the last 52 weeks. On June 4, 2025, American Water Works Company, Inc. (NYSE:AWK) stock closed at $138.84 per share with a market capitalization of $27.075 billion.

Impax US Sustainable Economy Fund stated the following regarding American Water Works Company, Inc. (NYSE:AWK) in its Q1 2025 investor letter:

“American Water Works Company, Inc. (NYSE:AWK) (Utilities) is held in the portfolio for its defensiveness characteristics, high ESG score, and for its exposure to improving water system efficiency, minimizing water loss and meeting the basic need for clean water. The stock rallied during the quarter as expectations for economic growth in the US weakened. This was reflected in the contraction of the 10-year treasury yield and the inverse in the company’s share price.”

American Water Works Company, Inc. (NYSE:AWK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held American Water Works Company, Inc. (NYSE:AWK) at the end of the first quarter, which was 41 in the previous quarter. While we acknowledge the potential of American Water Works Company, Inc. (NYSE:AWK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered American Water Works Company, Inc. (NYSE:AWK) and shared the list of most profitable utility stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.