Consolidated Water (CWCO) Rises But Trails Market: What Investors Should Know
The most recent trading session ended with Consolidated Water (CWCO) standing at $31.12, reflecting a +0.26% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.87%, and the Nasdaq, a tech-heavy index, added 1.6%.
The developer and operator of desalination plants's shares have seen an increase of 6.67% over the last month, surpassing the Utilities sector's loss of 6.84% and the S&P 500's loss of 5.17%.
Market participants will be closely following the financial results of Consolidated Water in its upcoming release. It is anticipated that the company will report an EPS of $0.38, marking a 660% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $37.02 million, showing a 47.8% escalation compared to the year-ago quarter.
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.
Investors should also pay attention to any latest changes in analyst estimates for Consolidated Water. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing 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 currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Consolidated Water is currently trading at a Forward P/E ratio of 21.21. This valuation marks a discount compared to its industry's average Forward P/E of 24.19.
Meanwhile, CWCO's PEG ratio is currently 2.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Utility - Water Supply industry was having an average PEG ratio of 2.65.
The Utility - Water Supply industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 12, finds itself in the top 5% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
