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Here's Why You Should Invest in Consolidated Water (CWCO) Now

Zacks Equity Research

Estimates for Consolidated Water Co. CWCO have been revised upward in the past 60 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved up 29.8% and 7.2%, respectively.

Consolidated Water is involved in the development and operation of seawater desalination plants and water distribution systems in areas where naturally occurring supplies of portable water are scarce or nonexistent.

Consolidated Water Co. Ltd. Price and Consensus

 

Consolidated Water Co. Ltd. Price and Consensus | Consolidated Water Co. Ltd. Quote

 

Let’s focus on the factors that make Consolidated Water a profitable bet.

Zacks Rank & Surprise History

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company posted an average positive earnings surprise of 1.85% in the trailing four quarters.

VGM Score

The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a solid Zacks Rank offer the best investment options.

Growth Projections

The Zacks Consensus Estimate for 2018 earnings per share is pegged at 74 cents, reflecting year-over-year improvement of 51.02%. Its estimated long-term earnings growth rate is pegged at 8%.

The Zacks Consensus Estimate for 2018 revenues is pegged at $66 million, reflecting a year-over-year rise of nearly 5.99%.

Operation Expansion

The company has operations in the United States and in some other countries across the globe. It focuses on expanding operation in areas with a large proportion of tourist properties and growing population.

To this end, the upcoming Rosarito project in Mexico is expected to boost the company’s performance significantly. During the first half of 2018, the company signed agreement with two corporations, which will provide 75% of the equity funding required to construct and operate the 100-million gallon per day seawater desalination plant and pipelines in Rosarito. Post completion, the project will provide opportunity to export water to the United States under long-term contracts.

Other Key Picks

A few other top-ranked stocks from the same sector are Ameren Corporation AEE, FirstEnergy Corporation FE and American States Water Company AWR. All the three stocks carry a Zacks Rank #2.

The Zacks Consensus Estimate for 2018 earnings for Ameren moved up 3.7% in the past 90 days. The company came up with a positive earnings surprise of 17.19% in the last quarter.

The Zacks Consensus Estimate for 2018 earnings for FirstEnergy rose 3.6% in the past 90 days. The company came up with a positive earnings surprise of 9.59% in the last quarter.

The Zacks Consensus Estimate for 2018 earnings for American States Water inched up 0.6% in the past 90 days. The company came up with a positive earnings surprise of 3.33% in the last quarter.

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