Consolidated Water (CWCO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Consolidated Water (CWCO) closed at $29.53, marking a +0.92% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the developer and operator of desalination plants had gained 8.94% over the past month. This has outpaced the Utilities sector's gain of 1.06% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from Consolidated Water as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $37.02 million, up 47.8% from the year-ago period.
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 should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.57% higher. Consolidated Water is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 20. This represents a discount compared to its industry's average Forward P/E of 25.15.
Also, we should mention that CWCO has a PEG ratio of 2.5. 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 2.94 as of yesterday's close.
The Utility - Water Supply industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
