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Consolidated Water (CWCO) closed at $24.45 in the latest trading session, marking a +1.28% move from the prior day. This change outpaced the S&P 500's 1.97% loss on the day. Elsewhere, the Dow saw a downswing of 1.69%, while the tech-heavy Nasdaq depreciated by 2.7%.
Shares of the developer and operator of desalination plants have depreciated by 11.64% over the course of the past month, underperforming the Utilities sector's gain of 1.07% 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.04 per share and a revenue of $136 million, representing changes of -7.14% and +1.52%, 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 suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has moved 25.48% lower. Right now, Consolidated Water possesses a Zacks Rank of #5 (Strong Sell).
Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 23.14. This valuation marks a premium compared to its industry's average Forward P/E of 21.45.
One should further note that CWCO currently holds a PEG ratio of 2.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Water Supply industry currently had an average PEG ratio of 2.78 as of yesterday's close.
The Utility - Water Supply industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 17% of over 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.