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Consolidated Water (CWCO) ended the recent trading session at $25.63, demonstrating a -0.12% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.15%.
The the stock of developer and operator of desalination plants has fallen by 4.82% in the past month, lagging the Utilities sector's gain of 4.83% and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Consolidated Water in its upcoming release. The company is predicted to post an EPS of $0.26, indicating a 52.73% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $31.84 million, indicating a 36.14% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.25 per share and revenue of $137.65 million, indicating changes of -35.23% and -23.62%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Consolidated Water. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.08% decrease. Consolidated Water is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Consolidated Water is currently trading at a Forward P/E ratio of 20.47. This denotes a discount relative to the industry's average Forward P/E of 21.18.
Also, we should mention that CWCO has a PEG ratio of 2.56. 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. By the end of yesterday's trading, the Utility - Water Supply industry had an average PEG ratio of 2.99.