Consolidated Water (CWCO) closed yesterday at $26.01, marking a +0.46% increase from the previous day. In contrast, the S&P 500 fell by 0.76%. The Dow reported a decrease of 0.75%, while the tech-heavy Nasdaq dropped by 1.01%.
Monthly Performance Overview
In the month leading up to today, shares of Consolidated Water have declined by 0.92%. This drop is less severe than the broader Utilities sector’s loss of 2.2%, but it pales in comparison to the S&P 500’s gain of 4.31% over the same period.
Upcoming Earnings Report and Expectations
Attention turns to Consolidated Water’s upcoming earnings announcement, where analysts expect the company to report earnings per share (EPS) of $0.26. This figure suggests a significant decline of 52.73% compared to the same quarter last year. Revenue projections sit at $31.84 million, showing a decrease of 36.14% year-over-year.
For the entire year, the Zacks Consensus Estimates forecast earnings of $1.25 per share and revenue of $137.65 million. These figures represent expected declines of 35.23% and 23.62%, respectively, from the previous year.
Analyst Forecast Adjustments
Changes in analyst estimates for Consolidated Water are important indicators of shifting business trends. Positive revisions can signal an optimistic outlook regarding the company’s financial health and future profitability.
Data indicates a connection between these estimate changes and stock price performance. To help investors navigate this, Zacks has created the Zacks Rank system, which evaluates estimate changes and assigns ratings from #1 (Strong Buy) to #5 (Strong Sell).
The Zacks Rank has proven to be effective, with #1 rated stocks boasting an average annual return of +25% since 1988. Currently, Consolidated Water holds a Zacks Rank of #3 (Hold), with no changes in the Consensus EPS estimate over the past month.
Valuation Metrics and Industry Context
Investors should take note of Consolidated Water’s valuation metrics. Its Forward P/E ratio stands at 20.66, which is below the industry average of 21.31. Additionally, the company has a PEG ratio of 2.58, indicating a relatively favorable growth outlook compared to the Utility – Water Supply industry’s average PEG of 3.23.
This industry is situated within the broader Utilities sector and currently holds a Zacks Industry Rank of 93, placing it in the top 37% out of more than 250 industries. The rank evaluates the average Zacks Rank of stocks within each group, and research suggests that higher-ranked industries significantly outperform lower-ranked ones.
Stay updated on these stock metrics and more at Zacks.com.
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To read the full article, visit Zacks.com.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
