Consolidated Water (CWCO) closed the most recent trading day at $26.29, moving +1% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.25%.
The the stock of developer and operator of desalination plants has risen by 0.54% in the past month, leading the Utilities sector's loss of 0.25% and undershooting the S&P 500's gain of 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of Consolidated Water in its upcoming earnings disclosure.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Consolidated Water currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Consolidated Water has a Forward P/E ratio of 18.59 right now. For comparison, its industry has an average Forward P/E of 18.92, which means Consolidated Water is trading at a discount to the group.
Investors should also note that CWCO has a PEG ratio of 2.32 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CWCO's industry had an average PEG ratio of 2.52 as of yesterday's close.
The Utility - Water Supply industry is part of the Utilities sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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