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The most recent trading session ended with Consolidated Water (CWCO) standing at $24.30, reflecting a -1.42% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.78%.
The developer and operator of desalination plants's stock has dropped by 2.22% in the past month, exceeding the Utilities sector's loss of 2.61% and lagging the S&P 500's gain of 1.67%.
Investors will be eagerly watching for the performance of Consolidated Water in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 52.73% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $31.77 million, indicating a 36.27% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and a revenue of $137.5 million, representing changes of -35.23% and -23.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Consolidated Water. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Consolidated Water is currently a Zacks Rank #4 (Sell).
In terms of valuation, Consolidated Water is presently being traded at a Forward P/E ratio of 19.67. This indicates a discount in contrast to its industry's Forward P/E of 21.04.
Also, we should mention that CWCO has a PEG ratio of 2.46. 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 was holding an average PEG ratio of 3.22 at yesterday's closing price.