AW AWK American Water Works Company, Inc Loading... : Bullish and Bearish Analyst Opinions

American Water and Essential Utilities merger clears Virginia regulatory hurdle and remains on track to close by end of Q1 2027 subject to remaining approvals.

"It went as high as 40 times earnings on the wave of sustainability... stock's come down... We believe that they can grow their earnings 11% roughly per year." The "ESG premium" that pushed the stock to 40x has evaporated, providing an attractive entry point. As the largest water utility, it offers reliable double-digit earnings growth and a dividend yield, now at a reasonable valuation. Value entry into a defensive compounder. Regulatory caps on utility rates or rising interest rates impacting yield attractiveness.