Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Consolidated Water (CWCO - Free Report) 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.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Consolidated Water Co. Ltd. (CWCO) - free report >>

Published in