Is American Water Works Stock Underperforming the S&P 500?
Camden, New Jersey-based American Water Works Company, Inc. (AWK) provides water and wastewater services in the United States. Valued at $27.2 billion by market cap, the company operates approximately 80+ surface water treatment plants, 520+ groundwater treatment plants, and 190+ wastewater treatment plants.
Companies worth $10 billion or more are generally described as “large-cap stocks.” American Water Works fits right into that category, with its market cap exceeding the threshold, reflecting its substantial size, dominance, and influence in the regulated water utility industry.
Despite its notable strengths, AWK stock has plunged 11.5% from its two-year high of $155.50 touched on Apr. 4. Meanwhile, the stock has declined 2.7% over the past three months, notably lagging behind the S&P 500 Index’s ($SPX) 10.7% surge during the same time frame.
AWK has underperformed the broader market over the longer term as well. AWK stock has gained 10.5% on a YTD basis and dropped 7.1% over the past 52 weeks, underperforming SPX’s 12.5% surge in 2025 and 17.6% gains over the past year.
The stock has remained mostly below its 50-day moving average since May with some fluctuation, underscoring its bearish trend.
American Water’s stock prices observed a marginal uptick in the trading session following the release of its mixed Q2 results on Jul. 30. The company has continued to observe solid momentum in the first half of 2025, its operating revenues for the quarter surged 11.1% year-over-year to $1.3 billion, exceeding the Street’s expectations by a significant 10.5%, boosting investor confidence. Meanwhile, the company’s EPS for the quarter increased 4.2% year-over-year to $1.48, missing the consensus estimates by 1 cent.
When compared to its peer, AWK has outperformed Essential Utilities, Inc.’s (WTRG) 4.1% gains in 2025, but underperformed WTRG’s 3.9% decline over the past year.
Among the 14 analysts covering the AWK stock, the consensus rating is a “Hold.” Its mean price target of $143.10 suggests a modest 4% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.