American Water Works Company (AWK - Free Report) is scheduled to report first-quarter 2017 results after the market closes on May 3. Last quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1.79%. Let’s see how things are shaping up for the first quarter.
Factors to Consider
Military Service Group performance was below expectations due to lower capital upgrades and could be a headwind in the first quarter as well. In addition, increase in the operating expenses in a concern and can impact the margins of the company.
During the quarter, Iowa American Water received approval from the Iowa Utilities Board to increase water rates. The rate hike will enable the company to recoup the investment made to strengthen water infrastructure.
Earnings Whispers
Our proven model does not conclusively show that American Water Works is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: American Water Works’ Earnings ESP is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 52 cents.
Zacks Rank: American Water Works carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
American Water Works Company does not have the correct mix to come out with an earning surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.
NiSource Inc. (NI - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #2. It is slated to report first-quarter 2017 earnings on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
PPL Corporation (PPL - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings on May 4.
Dominion Resources (D - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings May 4.
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Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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American Water Works Company (AWK - Free Report) is scheduled to report first-quarter 2017 results after the market closes on May 3. Last quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1.79%. Let’s see how things are shaping up for the first quarter.
Factors to Consider
Military Service Group performance was below expectations due to lower capital upgrades and could be a headwind in the first quarter as well. In addition, increase in the operating expenses in a concern and can impact the margins of the company.
During the quarter, Iowa American Water received approval from the Iowa Utilities Board to increase water rates. The rate hike will enable the company to recoup the investment made to strengthen water infrastructure.
Earnings Whispers
Our proven model does not conclusively show that American Water Works is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: American Water Works’ Earnings ESP is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 52 cents.
Zacks Rank: American Water Works carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
American Water Works Company does not have the correct mix to come out with an earning surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.
NiSource Inc. (NI - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #2. It is slated to report first-quarter 2017 earnings on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
PPL Corporation (PPL - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings on May 4.
Dominion Resources (D - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. It is slated to report first-quarter 2017 earnings May 4.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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