Thursday, January 14, 2016

American Water Works - Chart of the Day

American Water Works (AWK) is by default the Barchart Chart of the Day.  The water utilitity company has a Trend Spotter buy signal, a Weighted Alpha of 23.15+, gained 10.12% in the last year and paid a 2.26% dividend.

The Chart of the Day belongs to American Water Works (AWK) by default.  Yesterday  when the market closed only 7.96% of all the stocks traded closed above their 20 Day Moving Average and only 10.51% closed above their 50 Day Average.  Today is up but not much better.  One day up does not a rally make!  Bad syntax for an equally bad market.  I found the stock as the only stock on the 52 week high list that traded a full year or didn't have merger activity or rumors.  I have nothing else to talk about.

AWK is the largest investor-owned U.S. water and waste water utility company. With headquarters in Voorhees, N.J., the company employs nearly seven thousand dedicated professionals who provide drinking water, waste water and other related services to approximately 15.6 million people in 32 states and Ontario, Canada.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the web site when you read this report.

Barchart technical indicators:
  • 96% technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 7.07% in the last month
  • Relative Strength Index 62.35%
  • Technical support level at 59.38
  • Recently traded at 60.79 with a 50 day moving average of 58.24
Fundamental factors:
  • Market Cap $10.97 billion
  • P/E 23.15
  • Dividend yield 2.26%
  • Revenue expect to grow 5.20% this year and another 5.40% next year
  • Earnings estimated to increase 6.50% this year, 7.20% next year and continue to increase at an annual rate of 7.72% for the next 5 years
  • Wall Street analysts issued 4 strong buy, 7 buy and 5 hold recommendations on the stock
Although the 50-100 Day MACD Oscillator has been a reliable technical trading strategy for this stock, I thinks it's real value is in earnings, dividends and a good DRIP plan.

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