Consolidated Water (CWCO) closed at $34.06 in the latest trading session, marking a +1.61% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.41%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.
The stock of developer and operator of desalination plants has risen by 3.94% in the past month, leading the Utilities sector's gain of 2.23% and undershooting the S&P 500's gain of 9.71%.
The investment community will be paying close attention to the earnings performance of Consolidated Water in its upcoming release. The company is predicted to post an EPS of $0.27, indicating a 12.9% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $33.4 million, down 0.95% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.07 per share and revenue of $143.99 million, indicating changes of -7.76% and +9.02%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 18.63% lower within the past month. Consolidated Water presently features a Zacks Rank of #5 (Strong Sell).
Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 31.33. This indicates a premium in contrast to its industry's Forward P/E of 21.52.
The Utility - Water Supply industry is part of the Utilities sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 27% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).