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Why the Market Dipped But Consolidated Water (CWCO) Gained Today

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Consolidated Water (CWCO - Free Report) closed at $29.65 in the latest trading session, marking a +0.44% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.41%.

The developer and operator of desalination plants's shares have seen a decrease of 3.81% over the last month, not keeping up with the Utilities sector's loss of 2.07% and the S&P 500's gain of 4.83%.

The investment community will be closely monitoring the performance of Consolidated Water in its forthcoming earnings report.

It's also important for investors to be aware of any recent modifications to analyst estimates for Consolidated Water. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.54% increase. Consolidated Water presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Consolidated Water is holding a Forward P/E ratio of 23.74. Its industry sports an average Forward P/E of 20.43, so one might conclude that Consolidated Water is trading at a premium comparatively.

One should further note that CWCO currently holds a PEG ratio of 2.97. 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 had an average PEG ratio of 2.88 as trading concluded yesterday.

The Utility - Water Supply industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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