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Consolidated Water (CWCO) Ascends But Remains Behind Market: Some Facts to Note

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Consolidated Water (CWCO - Free Report) closed at $27.26 in the latest trading session, marking a +0.96% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.12%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 1.46%.

Shares of the developer and operator of desalination plants witnessed a gain of 1.35% over the previous month, trailing the performance of the Utilities sector with its gain of 1.79% and outperforming the S&P 500's loss of 4.13%.

The upcoming earnings release of Consolidated Water will be of great interest to investors. The company's earnings report is expected on March 17, 2025.

It is also important to note the recent changes to analyst estimates for Consolidated Water. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Consolidated Water is presently being traded at a Forward P/E ratio of 19.29. This signifies a discount in comparison to the average Forward P/E of 19.71 for its industry.

We can also see that CWCO currently has a PEG ratio of 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Water Supply industry currently had an average PEG ratio of 2.58 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 88, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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