5 Best Water Stocks To Buy

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

Number of Hedge Fund Holders: 35

American Water Works Company, Inc. (NYSE:AWK) is a New Jersey-based company that provides water and wastewater services in the United States. On October 31, American Water Works Company, Inc. (NYSE:AWK) reaffirmed its full-year 2022 earnings per share guidance range of $4.39 to $4.49 on a weather normalized basis versus consensus EPS estimate of $4.44. The company has a long-term dividend growth expectation of 7% to 9%. 

On December 8, American Water Works Company, Inc. (NYSE:AWK) declared a $0.655 per share quarterly dividend, in line with previous. The dividend is payable on March 1, 2023 to shareholders of record on February 7. The dividend yield on December 14 came in at 1.65%. 

Wells Fargo analyst Jonathan Reeder on December 14 raised the price target on American Water Works Company, Inc. (NYSE:AWK) to $159 from $149 to reflect higher peer group multiples since his last update, while maintaining an Equal Weight rating on the shares. His outlook for the sector is not as bullish heading into 2023, nor is he outright bearish.

According to Insider Monkey’s data, American Water Works Company, Inc. (NYSE:AWK) was part of 35 hedge fund portfolios at the end of September 2022, compared to 29 in the prior quarter. Charles Montanaro’s Montanaro Asset Management is a prominent stakeholder of the company, with 158,900 shares worth $20.6 million. 

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