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In the latest trading session, Consolidated Water (CWCO) closed at $23.89, marking a +1.01% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.33%.
The the stock of developer and operator of desalination plants has fallen by 5.36% in the past month, lagging the Utilities sector's loss of 4.46% and the S&P 500's gain of 0.41%.
The investment community will be paying close attention to the earnings performance of Consolidated Water in its upcoming release. The company is expected to report EPS of $0.26, down 52.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $31.77 million, indicating a 36.27% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.25 per share and a revenue of $137.5 million, signifying shifts of -35.23% and -23.7%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Consolidated Water. 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Consolidated Water presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Consolidated Water is presently being traded at a Forward P/E ratio of 18.87. This expresses a discount compared to the average Forward P/E of 20 of its industry.
Also, we should mention that CWCO has a PEG ratio of 2.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Utility - Water Supply stocks are, on average, holding a PEG ratio of 3.17 based on yesterday's closing prices.
The Utility - Water Supply industry is part of the Utilities sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.