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Consolidated Water (CWCO) Laps the Stock Market: Here's Why
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In the latest trading session, Consolidated Water (CWCO - Free Report) closed at $25.36, marking a +1.2% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.09%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the developer and operator of desalination plants witnessed a loss of 2.91% over the previous month, beating the performance of the Utilities sector with its loss of 4.45% and underperforming the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of Consolidated Water in its forthcoming earnings report. In that report, analysts expect Consolidated Water to post earnings of $0.34 per share. This would mark a year-over-year decline of 27.66%. At the same time, our most recent consensus estimate is projecting a revenue of $36.94 million, reflecting a 16.49% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $143.89 million. These totals would mark changes of -31.09% and -20.15%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Consolidated Water. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. As of now, Consolidated Water holds a Zacks Rank of #3 (Hold).
Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 18.8. This expresses a discount compared to the average Forward P/E of 20.81 of its industry.
Investors should also note that CWCO has a PEG ratio of 2.35 right now. 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. By the end of yesterday's trading, the Utility - Water Supply industry had an average PEG ratio of 2.7.
The Utility - Water Supply industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Consolidated Water (CWCO) Laps the Stock Market: Here's Why
In the latest trading session, Consolidated Water (CWCO - Free Report) closed at $25.36, marking a +1.2% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.09%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the developer and operator of desalination plants witnessed a loss of 2.91% over the previous month, beating the performance of the Utilities sector with its loss of 4.45% and underperforming the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of Consolidated Water in its forthcoming earnings report. In that report, analysts expect Consolidated Water to post earnings of $0.34 per share. This would mark a year-over-year decline of 27.66%. At the same time, our most recent consensus estimate is projecting a revenue of $36.94 million, reflecting a 16.49% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $143.89 million. These totals would mark changes of -31.09% and -20.15%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Consolidated Water. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. As of now, Consolidated Water holds a Zacks Rank of #3 (Hold).
Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 18.8. This expresses a discount compared to the average Forward P/E of 20.81 of its industry.
Investors should also note that CWCO has a PEG ratio of 2.35 right now. 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. By the end of yesterday's trading, the Utility - Water Supply industry had an average PEG ratio of 2.7.
The Utility - Water Supply industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.