Consolidated Water (CWCO) Registers a Bigger Fall Than the Market: Important Facts to Note
Consolidated Water (CWCO) ended the recent trading session at $29.26, demonstrating a -0.1% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the developer and operator of desalination plants had lost 2.92% over the past month. This has was narrower than the Utilities sector's loss of 10.52% and lagged the S&P 500's loss of 1.6% in that time.
The investment community will be paying close attention to the earnings performance of Consolidated Water in its upcoming release. The company's upcoming EPS is projected at $0.38, signifying a 660% increase compared to the same quarter of the previous year. 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $144.13 million, which would represent changes of +170.37% and +53.16%, respectively, from the prior year.
Any recent changes to analyst estimates for Consolidated Water should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Consolidated Water holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Consolidated Water has a Forward P/E ratio of 20.02 right now. This signifies a discount in comparison to the average Forward P/E of 24.11 for its industry.
Meanwhile, CWCO's PEG ratio is currently 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 had an average PEG ratio of 2.5 as trading concluded yesterday.
The Utility - Water Supply industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
