Consolidated Water (CWCO) ended the recent trading session at $32.75, demonstrating a -3.53% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.36%.
Coming into today, shares of the developer and operator of desalination plants had gained 7.71% in the past month. In that same time, the Utilities sector lost 0.07%, while the S&P 500 gained 5.98%.
The upcoming earnings release of Consolidated Water will be of great interest to investors. On that day, Consolidated Water is projected to report earnings of $0.27 per share, which would represent a year-over-year decline of 12.9%. In the meantime, our current consensus estimate forecasts the revenue to be $33.4 million, indicating a 0.95% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.07 per share and revenue of $143.99 million. These totals would mark changes of -7.76% and +9.02%, respectively, from last year.
Any recent changes to analyst estimates for Consolidated Water should also be noted by investors. 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, there's been a 31.85% fall in the Zacks Consensus EPS estimate. Right now, Consolidated Water possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Consolidated Water is at present trading with a Forward P/E ratio of 31.73. This valuation marks a premium compared to its industry average Forward P/E of 20.11.
The Utility - Water Supply industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).