Yahoo Finance American Water's (AWK) Pennsylvania Arm to Buy Assets for $5M
American Water Works Company, Inc.’s AWK subsidiary, Pennsylvania American Water, recently announced that it has signed a deal to buy the water systems of East Dunkard Water Authority for $5 million. The acquisition will expand Pennsylvania American Water’s footprint to 38 counties around the Commonwealth and add nearly 1,600 consumers in Dunkard and Greene Townships, as well as other regions in Greene County, PA.
The company will invest $17 million in the water system acquired from East Dunkard Water Authority to improve the water treatment plant and overall system reliability in the long run.
Growth Prospects
As of Mar 31, 2023, Pennsylvania American Water entered into six agreements to acquire assets. Closure of all six acquisitions under the agreement will add 28,000 customer connections.
The acquisitions will further expand company’s customer base, and investment made to upgrade the acquired assets will allow it to maintain and provide high-quality services to its new customers.
Pennsylvanian American Water has been upgrading and maintaining its water and wastewater infrastructure by replacing old water mains methodically and has invested nearly $490 million in 2022 for infrastructure upgrades. Proper infrastructure maintenance allows it to serve its 2.3 million customers more efficiently.
Price Performance
Over the past month, shares of AWK have rallied 5.3% against the industry’s 32.5% decline.
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Zacks Rank & Other Key Picks
American Water currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked companies from the same industry are Consolidated Water Co Ltd. CWCO, California Water Service Group CWT and Essential Utilities Inc. WTRG. Consolidated Water sports a Zacks Rank #1 while California Water and Essential Utilities carry a Zacks Rank #2 at present.
CWCO’s long-term (three- to five-year) earnings growth rate is pegged at 8%. The Zacks Consensus Estimate for 2023 sales indicates an increase of 40.5% over 2022’s reported figure.
The Zacks Consensus Estimate for CWT’s 2023 earnings per share indicates an year-over-year increase of 4.5%. The Zacks Consensus Estimate for 2023 sales indicates suggests an increa rise of 1.1% over 2022’s reported figure.
WTRG’s long-term earnings growth rate is pegged at 5.6%. The Zacks Consensus Estimate for 2023 sales indicates a year-over-yearn increase of 3%.
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American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
California Water Service Group (CWT) : Free Stock Analysis Report
Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
Essential Utilities Inc. (WTRG) : Free Stock Analysis Report
