Strategic Equity Longs: Trade Insights 4: AWK 03 Feb 2025Delivering strategic equity longs with precision and insight. Entry criteria gets published before the price event occurs.
Ticker: AWK
Entry criterial: Daily candle close above 126.10
Entry valid till: 04 Feb 2025
Pattern: Downtrend reversal
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1AWK trade ideas
AWK LongUBS analyst Gregg Orrill upgraded American Water (AWK) to a "Buy" rating, raising the price target to $155 from $151. He’s more confident in the company’s future after seeing strong financials and meeting with management. Here are some of the key reasons for the upgrade:
1. Earnings Growth: The company has grown earnings by 7.75% this year and is expected to keep growing at a solid pace, with a projected 8.14% growth next year.
2. Profitability: American Water has a strong profit margin of 21.77%, showing it's good at turning sales into actual profits.
3. Revenue Growth: The company saw a solid 9.24% increase in sales year-over-year, and a strong 13.37% increase in the most recent quarter.
These factors, along with a $1 billion boost to its capital plan, have UBS confident in American Water’s ability to keep growing steadily through 2028.
American WAter Works ,,, Trending Uptrend
In my strategy, forming a new uptrend will be after breaking a descending trend line and passing out of a price level, preferably major one. After about 3 years correction, it seems a new uptrend has been started after passing of a major High. I'm waiting for a pullback to the broken level and getting a buying position.
AWK: Invest In Companies You Literally Cannot Live WithoutAmerican Water Works Co (AWK) Trade Idea.
American Water Works is the largest investor-owned us water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
Narrow moat, standard allocation, and low FV uncertainty.
Valuations have come back down to earth. Morningstar displays a four-star price-to-fair-value.
The business cycle is late-stage, and playing defense makes sense.
Technicals are interesting.
Risks include sequential dilutions until 2027. A lack of growth could also be a disappointment for some investors with unrealistic expectations. Greenblue quant report also displays a low score of 957. But relative to the utilities sector, AWK is the 7th best.
American Water Works: Take-off 🛫At AWK, we now consider the low of the green wave (B) to be in place. We now expect a rise above the resistance at $161.91. Within the green and magenta target zone between $106.48 and $127.19, long positions could still be opened. Stops could be placed about 1% below the lower edge.
#AWK#American Water Works Company (AWK) is committed to providing water and wastewater treatment services to residential, commercial, and industrial customers across the United States.
Financial Performance:
Q2 2023: The company reported revenue of $8.882 billion in the second quarter of 2023, showing an increase compared to the same period last year. Net income also increased to $2.02374 billion, or $0.97 per share, while in Q2 2022, it was $0.87 billion, or $2.2022 per share.
Q3 2023: For the third quarter of 2023, the revenue was reported at $3 billion, higher than the $2.0231 billion reported in the same period last year. The net profit for AWK this quarter was $1.94 billion, or $215.1 per share.
Dividends:
AWK announced a quarterly dividend of $0.7075 per share, translating to an annual dividend of $2.83 per share, with a dividend yield ranging between 2.39% to 2.44%. The company has been increasing its dividend for 14 consecutive years, demonstrating a strong commitment to maintaining and growing its dividend. The payout ratio has consistently stayed below 75%.
Technical Analysis:
Technical Indicators: The 50-day moving average for AWK stands at $121.38, while the 200-day moving average is at $129.77, serving as potential support or resistance levels for the stock.
Like other utility companies, AWK faces operational risks including regulatory compliance, infrastructure investments, and weather-related disruptions, which could impact its financial performance and stock valuation.
American Water Works: Big wave is coming 🌊American Water Works has now risen a bit after its significant decline. It is impossible to say whether the stock has already deposited the low of the magenta wave . Only a sustained rise should convince us of this. Theoretically, the price still has room on the downside but should stay within the support at $132.87 because our alternative is activated otherwise. After depositing the low, we expect a bullish green three-part movement, which targets the blue target zone between $181.74 and $214.65.
NYSE:AWK+NASDAQ:LOVE+NASDAQ:TCOM*4+NASDAQ:CAKE*4 New GroupNYSE:AWK+NASDAQ:LOVE+NASDAQ:TCOM*4+NASDAQ:CAKE*4 This is my new group it started at $3.50 this morning. Was finally able to get a 1 long term of my new addition CAKE and 3 short term. Same game plan. Wait for a strong day and look for potential weakness and take profits. Add something new to keep the balance. Will post a new list of refill potentials later.
This combination has been working pretty good by keeping my group in the green even when one needs to reaccumulate or I get in to early.
American Water Works: Step by Step 📍In several stages, American Water Works should make its way to the top of wave b in gray. First, though, the share needs to finish wave B in turquoise before the support at $132.87. Otherwise, we would expect it to develop a new low of wave alt.(X) in magenta first, which would then be located in the magenta zone between $127.19 and $113.53. We rate this alternative detour with a probability of 37%. Primarily, though, we expect American Water Works to turn upwards before $132.87, heading above the resistance at $161.91 and thus into the green zone between $163.63 and $177.65 to complete wave A in green. Wave B in green should then take the share back below this mark, before the next upwards stage can start. Finally, American Water Works should expand wave b in gray, which should reach into the gray zone between $181.74 and $214.65.
AWK: potential upside break?A price action above 148.00 supports a bullish trend direction.
Further bullish confirmation for a break above 152.00.
The upside target price is set at 156.00.
The stop-loss price is set at 146.00 (200-day simple moving average).
Fading downside price momentum supports the positive bias.