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.
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