Consolidated Water (CWCO) closed at $35.31 in the latest trading session, marking a -1.09% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.35%.
Heading into today, shares of the developer and operator of desalination plants had gained 3.84% over the past month, outpacing the Utilities sector's gain of 1.95% and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Consolidated Water in its upcoming release. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 12.9% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $33.4 million, showing a 0.95% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $143.99 million, which would represent changes of -7.76% and +9.02%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Consolidated Water. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 31.85% lower. Consolidated Water presently features a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Consolidated Water is presently trading at a Forward P/E ratio of 33.36. This signifies a premium in comparison to the average Forward P/E of 22.38 for its industry.
The Utility - Water Supply industry is part of the Utilities sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 25% of all 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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Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).