American Water Works Co., Inc. is a water and wastewater utility company. Co.'s primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other market-based businesses that provide water and wastewater services to the U.S. government on military installations, as well as municipalities. Co. operates its business primarily through one segment: the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states.
When researching a stock like American Water Works, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AWK Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AWK stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AWK 200 day moving average ("AWK 200 DMA"), while one of the most popular "shorter look-backs" is the AWK 50 day moving average ("AWK 50 DMA"). A chart showing both of these popular moving averages is shown on this page for American Water Works. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AWK 200 DMA and the AWK 50 DMA, we get a moving average convergence divergence indicator ("AWK MACD"). The AWK MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis