Bear Of The Day: American States Water (AWR)

HomeInvesting

Bear Of The Day: American States Water (AWR)

American States Water (AWR) is a Zacks Rank #5 (Robust Promote) as estimates have fallen for this i


American States Water (AWR) is a Zacks Rank #5 (Robust Promote) as estimates have fallen for this inventory.  Aftrer an earnings miss in early November, this inventory has really moved larger and meaning the valuation has additionally moved larger. Let’s take a deeper take a look at this tock in thie Bear of the Day article.

Description

American States Water Firm together with its subsidiaries supplies contemporary water, wastewater providers and electrical energy to its prospects in the USA. The corporate principally works by its two main subsidiaries — Golden State Water Firm (“GSWC”) and American States Utility Companies (“ASUS”). American States Water Firm and its subsidiaries had a complete of 841 workers as of Dec 31, 2019. The corporate was based in 1929.

Earnings Historical past

The earnings historical past for AWR isn’t that nice. I see two misses, one beat and one meet.  

The excellent news in there may be that the beat was a stable one and large enough to maintain the typical constructive over the past 4 quarters.

Estimate Revisions

The Zacks Rank tells us when earnings estimates are shifting decrease.  I see the present quarter shifting larger, however the full yr 2020 quantity is definitely shifting decrease.  

Subsequent quarter, which can actually be the first quarter of 2021 as the ultimate quarter of 2020 hasn’t been reported but, has ticked decrease.

The complete yr 2021 quantity has dipped three cents from $2.42 to $2.39.

When estimates transfer decrease, the Zacks Rank can even transfer decrease.

Valuation

For a utility with little in the best way of topline development you’d suppose the earnings a number of could be fairly cheap.  That isn’t the case, with a 33x ahead earnings mulitple and a 4.7x value to guide a number of.  The value to gross sales can be tremendous excessive at 6.2x.  

This excessive valuation is due partly to the inventory shifting larger over the previous couple of months.  If there’s a correction, Utilities are sometimes considered a protected harbor, however that may not be the case for this inventory.

Chart

 

American States Water Firm Value and Consensus

American States Water Company Price and Consensus

American States Water Firm price-consensus-chart | American States Water Firm Quote

Authorized Marijuana: An Investor’s Dream

Think about getting in early on a younger trade primed to skyrocket from $17.7 billion in 2019 to an anticipated $73.6 billion by 2027.

Though marijuana shares did higher because the pandemic took maintain than the market as an entire, they’ve been pushed down. That is precisely the best time to get in on chosen robust corporations at a fraction of their worth earlier than COVID struck. Zacks’ Particular Report, Marijuana Moneymakers, reveals 10 thrilling tickers for pressing consideration.

Obtain Marijuana Moneymakers FREE >>

Need the newest suggestions from Zacks Funding Analysis? In the present day, you possibly can obtain 7 Finest Shares for the Subsequent 30 Days. Click on to get this free report
 
American States Water Firm (AWR): Free Inventory Evaluation Report
 
To learn this text on Zacks.com click on right here.
 
Zacks Funding Analysis

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.



www.nasdaq.com