Consolidated Water (CWCO) Outperforms Broader Market: What You Need to Know
Consolidated Water (CWCO) closed the latest trading day at $29.52, indicating a +1.83% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.48%.
The the stock of developer and operator of desalination plants has fallen by 0.51% in the past month, leading the Utilities sector's loss of 5.01% and the S&P 500's loss of 2.79%.
Analysts and investors alike will be keeping a close eye on the performance of Consolidated Water in its upcoming earnings disclosure. The company's earnings report is set to go public on November 10, 2023. On that day, Consolidated Water is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 680%. At the same time, our most recent consensus estimate is projecting a revenue of $37.02 million, reflecting a 47.8% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.48 per share and revenue of $144.13 million, indicating changes of +174.07% and +53.16%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Consolidated Water. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. Right now, Consolidated Water possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Consolidated Water is currently trading at a Forward P/E ratio of 19.63. This denotes a discount relative to the industry's average Forward P/E of 23.76.
Investors should also note that CWCO has a PEG ratio of 2.45 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Water Supply was holding an average PEG ratio of 2.56 at yesterday's closing price.
The Utility - Water Supply industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
