We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Acquisitions Boost American Water's (AWK) Q3 Earnings?
Read MoreHide Full Article
We expect American Water Works Company (AWK - Free Report) to beat earnings estimates when it releases third-quarter 2019 results on Oct 30, after market close. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for American Water this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +1.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #3.
American Water Works Company, Inc. Price and EPS Surprise
American Water has been enjoying the benefits of acquisitions. This is likely to have continued in the third quarter as well. Acquisitions closed till July 2019 added 30,700 customers to its customer base, which will positively reflect on third-quarter results.
During the quarter, the company provided water and wastewater services to 14 military bases under long-term contracts, which are expected to have had a positive impact on earnings. In addition, new water rates that came into effect at the end of the second quarter and during the third quarter are anticipated to have positively impacted its third-quarter earnings.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.29 per share, which indicates year-over-year growth of 7.5%.
Other Stocks to Consider
In addition to American Water, here are a few other companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Pattern Energy Group Inc. is set to release third-quarter 2019 numbers on Nov 4. It has an Earnings ESP of +2.10% and carries a Zacks Rank #2.
Eversource Energy (ES - Free Report) is slated to release third-quarter 2019 results on Nov 5. It has an Earnings ESP of +1.06% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Will Acquisitions Boost American Water's (AWK) Q3 Earnings?
We expect American Water Works Company (AWK - Free Report) to beat earnings estimates when it releases third-quarter 2019 results on Oct 30, after market close. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for American Water this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +1.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #3.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Factors at Play
American Water has been enjoying the benefits of acquisitions. This is likely to have continued in the third quarter as well. Acquisitions closed till July 2019 added 30,700 customers to its customer base, which will positively reflect on third-quarter results.
During the quarter, the company provided water and wastewater services to 14 military bases under long-term contracts, which are expected to have had a positive impact on earnings. In addition, new water rates that came into effect at the end of the second quarter and during the third quarter are anticipated to have positively impacted its third-quarter earnings.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.29 per share, which indicates year-over-year growth of 7.5%.
Other Stocks to Consider
In addition to American Water, here are a few other companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
PNM Resources Inc. (PNM - Free Report) is scheduled to release third-quarter 2019 results on Nov 1. It has an Earnings ESP of +1.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pattern Energy Group Inc. is set to release third-quarter 2019 numbers on Nov 4. It has an Earnings ESP of +2.10% and carries a Zacks Rank #2.
Eversource Energy (ES - Free Report) is slated to release third-quarter 2019 results on Nov 5. It has an Earnings ESP of +1.06% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>