American Water Works saw an improvement in its IBD SmartSelect Composite Rating Tuesday, from 94 to 97.
The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
American Water Works broke out earlier, but has fallen back below the prior 150.68 entry from a cup without handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to take shape.
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The stock earns an 89 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth is outpacing 89% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
The company posted a 39% increase in earnings for Q4. That means it's now delivered two straight quarters of rising EPS gains. Revenue growth increased 16%, up from 13% in the prior report. The company has now posted rising growth in each of the last two reports.
American Water Works earns the No. 2 rank among its peers in the Utility-Water Supply industry group. SABESP ADR is the No. 1-ranked stock within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
