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Here's Why Consolidated Water (CWCO) Gained But Lagged the Market Today

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In the latest market close, Consolidated Water (CWCO - Free Report) reached $25.21, with a +0.16% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the developer and operator of desalination plants had lost 9.33% over the past month, lagging the Utilities sector's gain of 5.06% and the S&P 500's gain of 2.06% in that time.

The investment community will be closely monitoring the performance of Consolidated Water in its forthcoming earnings report. The company is predicted to post an EPS of $0.26, indicating a 52.73% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $31.84 million, down 36.14% from the year-ago period.

CWCO's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $137.65 million. These results would represent year-over-year changes of -35.23% and -23.62%, respectively.

Any recent changes to analyst estimates for Consolidated Water should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Consolidated Water is currently a Zacks Rank #3 (Hold).

Looking at valuation, Consolidated Water is presently trading at a Forward P/E ratio of 20.08. This indicates a discount in contrast to its industry's Forward P/E of 20.94.

Investors should also note that CWCO has a PEG ratio of 2.51 right now. 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 industry currently had an average PEG ratio of 3.26 as of yesterday's close.

The Utility - Water Supply industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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