Consolidated Water (CWCO) ended the recent trading session at $38.35, demonstrating a +1.24% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the developer and operator of desalination plants have appreciated by 8.76% over the course of the past month, outperforming the Utilities sector's gain of 0.58%, and the S&P 500's gain of 0.74%.
The investment community will be paying close attention to the earnings performance of Consolidated Water in its upcoming release.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $136.97 million, which would represent changes of +10.71% and 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Consolidated Water should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Consolidated Water possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Consolidated Water currently has a Forward P/E ratio of 23.98. This valuation marks a premium compared to its industry average Forward P/E of 20.42.
The Utility - Water Supply industry is part of the Utilities sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% of all 250+ industries.
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.
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Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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