Consolidated Water (CWCO) Dips More Than Broader Markets: What You Should Know
Consolidated Water (CWCO) closed the most recent trading day at $29.79, moving -1.26% from the previous trading session. This change lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Coming into today, shares of the developer and operator of desalination plants had gained 19.58% in the past month. In that same time, the Utilities sector gained 0.24%, while the S&P 500 gained 2.08%.
Investors will be hoping for strength from Consolidated Water as it approaches its next earnings release. On that day, Consolidated Water is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 660%. Meanwhile, our latest consensus estimate is calling for revenue of $37.02 million, up 47.8% from the prior-year quarter.
CWCO's full-year Zacks Consensus Estimates are calling for earnings of $1.46 per share and revenue of $144.13 million. These results would represent year-over-year changes of +170.37% and +53.16%, respectively.
Investors might also notice recent changes to analyst estimates for Consolidated Water. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.14% higher. Consolidated Water currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Consolidated Water is currently trading at a Forward P/E ratio of 20.62. Its industry sports an average Forward P/E of 26.37, so we one might conclude that Consolidated Water is trading at a discount comparatively.
It is also worth noting that CWCO currently has a PEG ratio of 2.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Water Supply industry currently had an average PEG ratio of 3.1 as of yesterday's close.
The Utility - Water Supply industry is part of the Utilities sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
