Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

American Water Works Company’s (AWK - Snapshot Report) unit Iowa American Water has started to drill a well and also intends to install a booster pump station in its newly acquired water system of the Town of Dixon. The operations will come online in Sep 2013.

The water drawn from the well will significantly reduce nitrate levels, thereby bringing the system in compliance with federal environmental norms and state requirements. The booster pump installed at the system would help to increase water pressure.

A few days back, American Water Works acquired the Town of Dixon Water System. This acquisition will enable the company to serve 104 more customers in northwest Davenport.

It is evident that American Water Works is currently following a steady organic as well as inorganic growth strategy to expand its operations. During the first six months of 2013, the company spent $429.8 million under its capital spending program.

In Jul 2013, the company started the development of a new 250,000-gallon water storage tank on Crestview Drive. In May 2013, American Water Works completed its $101 million Pittsburg System Upgrade project.

On the inorganic expansion front, American Water Works’ unit Pennsylvania American Water acquired a municipal wastewater system in Beaver County for $1.8 million. The company will add 500 customers in Koppel Borough and a portion of Big Beaver Borough from this acquisition.

The infrastructure addition and upgrade program will enable American Water Works to provide uninterrupted water to its customers and strengthen system competence. These factors will subsequently improve reliability and public safety, while maintaining government water quality regulations.

American Water Works is presently waiting for rate case decisions in five states in which it operates. A favorable decision will enable American Water Works to recoup its earlier invested funds. Also, we believe the bill-hike approval will further give confidence to the utilities to invest more on infrastructure upgrades.

Voorhees, N.J.-based American Water Works was founded in 1886. The company serves around 14 million people with water and water related services.

American Water Works currently has a Zacks Rank # 3 (Hold). Other water utilities, which are doing well include Connecticut Water Service Inc. (CTWS - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and Consolidated Water Co. Ltd. (CWCO - Snapshot Report) and SJW Corp. (SJW - Snapshot Report), each with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
KNIGHTSBRIDG VLCCF 13.95 +11.24%
E*TRADE FINA ETFC 22.56 +4.93%
MODINE MANUF MOD 16.51 +4.89%
QUESTCOR PHA QCOR 83.31 +4.05%
CANADIAN SOL CSIQ 30.38 +4.01%