American States Water Company (AWR) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of American States Water Company (AWR) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 6 reasons to sell AWR stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AWR stock:

  • Is AWR a buy or a sell?
  • Should I sell or hold AWR stock today?
  • Is AWR a good buy / investment?
  • What are AWR analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AWR stock:

1. AWR quarterly revenue growth was 6.60%, higher than the industry and sector average revenue growth (4.55% and 4.79%, respectively). See AWR revenue growth chart.

2. AWR profitability is improving. The YoY profit margin change was 2.04percentage points. See AWR profitability chart.

3. AWR forward dividend yield is 1.54%, higher than the industry (1.23%) and sector (1.02%) forward dividend yields. See AWR forward dividend chart.

4. AWR Price/Sales ratio is 5.91, and it’s low compared to its industry peers’ P/S ratios. See AWR forward Price/Sales ratio chart.

5. AWR PEG ratio (P/E adjusted for growth) is 5.95, and it’s low compared to its industry peers’ PEG ratios. See AWR PEG chart.

Now that you understand the bull case, let’s look at the reasons to sell AWR stock (i.e., the bear case):

1. AWR stock price ($72.03) is close to the 52-week high ($72.29). Perhaps now is a good time to sell? See AWR price chart.

2. AWR forward P/E ratio is 33.59, and it’s high compared to its industry peers’ P/E ratios. See AWR forward P/E ratio chart.

3. AWR Price/Book ratio is 4.62, and it’s high compared to its industry peers’ P/B ratios. See AWR forward Price/Book ratio chart.

4. AWR average analyst price target ($59.00) is below its current price ($72.03). See AWR price target chart.

5. AWR short share of float is 7.51%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AWR short share of float chart.

6. AWR short interest (days to cover the shorts) ratio is 13.37. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AWR short interest ratio chart.

Now let's look at the key statistics for AWR:

Metrics AWR
Price $74.22
Average Price Target / Upside $59.00 / -20.51%
Average Analyst Rating Sell
Industry Utilities - Regulated Water
Sector Utilities
Number of Employees 817
Market Cap $2.67B
Forward P/E Ratio 34.36
Price/Book Ratio 6.01
PEG 6.13
Revenue (TTM) $443.82M
YoY Quarterly Revenue Growth 7.4%
Profit Margin 14.86%

What are your thoughts on AWR?

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