American Water Works Stock: Is Wall Street Bullish or Bearish?

Camden, New Jersey-based American Water Works Company, Inc. (AWK), with a market capitalization of approximately $26.8 billion, is the largest regulated water and wastewater utility in the U.S. It provides safe, reliable, and affordable drinking water and wastewater services to approximately 14 million people across 14 states and military installations.

Shares of this leading water utility company have significantly underperformed the broader market over the past year. AWK has declined 5.1% over this period, compared with a 20.6% gain for the broader S&P 500 Index ($SPX). The stock has continued to underperform the index in 2026, gaining 4.6% year-to-date, compared with the S&P 500’s 13.9% gain over the same period.

Compared with the Invesco S&P Global Water Index ETF (CGW), AWK has also slightly underperformed. CGW has gained marginally over the past year and 4.2% year-to-date.

On July 29, American Water Works reported its Q2 FY2026 earnings, sending shares marginally higher as investors digested the results, which topped estimates. Operating revenues grew 6.2% year-over-year to $1.36 billion, driven by authorized rate increases and acquisitions. Adjusted EPS rose 8.1% to $1.61 from the prior-year quarter.

American Water affirmed its full-year 2026 adjusted EPS guidance of $6.02 to $6.12, along with its long-term targets of 7% to 9% annual growth in both earnings per share and dividends. The company also cited continued progress on its proposed merger with Essential Utilities, with three states having approved the deal and a settlement in principle reached in Texas. 

Analysts expect AWK’s diluted EPS to increase 8% year-over-year to $6.09 for the fiscal year ending in December 2026. AWK has surpassed consensus EPS estimates in two of the past four quarters and missed them in the other two.

Among the 13 analysts covering AWK stock, the consensus rating is “Hold,” based on three “Strong Buys,” nine “Holds,” and one “Strong Sell.”

This configuration is more bullish compared with three months ago, when the stock had two “Strong Buy” recommendations.

On August 4, Truist Securities analyst Richard Sunderland maintained a “Hold” rating on American Water Works and lowered the price target from $139 to $138.

Based on analysts’ estimates, the mean price target of $141.25 implies a 3.5% premium to AWK’s current share price. The Street-high price target of $155 implies a 13.6% upside.