AWK stock: buy or sell
Updated on:
Jul 29th, 2021
2
AWK stock brief
- American Water Works stock barely changed 0.09% to close at $170.35 on the stock market on Wednesday.
- American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States.
Should I buy American Water Works stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AWK stock a buy?
Currently, American Water Works stock matches 2 trading strategies:
Uptrend buy setup
American Water Works stock continues to trend higher since last March and has marked an amazing 30.55% gain. Price marked a pull back in this uptrend at $153.33 in late June, and since then it bounced up a 11.10%. Price just broke out above the entry point at $163.00, but it can be traded. If price climbs beyond $171.15, you should not chase the price and wait for the following opportunity. If you decide to enter this trade, the suggested stop loss is at $148.73
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $163.00 | $148.73 | 8.75% |
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. American Water Works can break to ATH any time soon, as it only needs to rise a 0.56%. The buy point is at $171.30 if you want to trade with this strategy. Place your stop-loss at $154.17
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $171.30 | $154.17 | 10.00% |
Should I sell American Water Works stock?
How to know when is it time to sell American Water Works stock?. Like when we have to buy shares, choosing when is appropiate to sell is not a whimsical decision, and we must adhere our own trading strategy. Our trading system selects very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups are not intended for selling short $AWK stock
A guiding principle is that you must never hold a trading operation that results in higher than expected losses upon purchase. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell American Water Works stock?
Currently, American Water Works stock doesn't match any of our preferred sell setups, so if you own American Water Works shares and your operation is in profit probably is not time to sell now
American Water Works ratings
We don't have any rating posted in the last 30 days for American Water Works
American Water Works stock analysis
American Water Works stock started an uptrend last March, and gained a gorgeous 30.55%. The price line shows higher peaks and higher troughs, and along the way gave some buying opportunities for those who wanted to trade in. Latest low was in late June, when price bounced at $153.33. On July 14, American Water Works broke out above its last top ($163.00) giving a good buy point
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for just one day (weak signal). The RSI value on Wednesday was 65.51
American Water Works stock price history
American Water Works started trading on Apr 23rd, 2008 priced at $14.70 per share1. Since then, AWK stock has risen by 1,058.84%, with an average of 81.45% per year. An investment of $1,000USD at that time would be valued $11,588.44 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for American Water Works stock
Nobody can predict how much a stock will be priced in the future. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions post their price predictions based on the stock price action and the company fundamental data. Most of these estimates follow the release of new fundamental information by the company, and many times. Again, these targets are not direct recommendations for individual traders and must not be trusted blindly.
In the previous month we couldn't find any price target published for American Water Works stock.
Earnings and financials
American Water Works Company, Inc. ($AWK) came out with quarterly earnings of $0.73 per share last May, matching the Wall St consensus estimate of $0.73 per share. Revenue resulted of $888.0 million in contrast to $850.7 million estimated by market consensus.
In comparison, the EPS for the same quarter last year was $0.67, so reported EPS is a increase of 8.96%. Sales moved up a 5.21% on an annualized basis in the , from $8.4B to $8.9B last quarter.AWK ($AWK) will host the quarterly earnings call next Wednesday. Forecasted for this quarter is $1.09, compared to $0.73 that was reported for Q1. Turn over estimates are $1.0 billion.
American Water Works performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| American Water Works ($AWK) | 8.90% | 10.70% | 9.30% |
Important note:
The viewpoints written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the particular positions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for education motives onlyAWK summary
| Wednesday, July 28th, 2021 | |
|---|---|
| Open | $170.15 |
| Close | $170.35 |
| Day range | $168.6 - $170.86 |
| Previous close | $170.2 |
| Session gain | 0.09% |
| Average true range | $3.71 |
| 50d mov avg | $159.24 |
| 100d mov avg | $154.38 |
| 200d mov avg | $154.03 |
| Earnings date | August 4th, 2021 |