Consolidated Water (CWCO) Outpaces Stock Market Gains: What You Should Know

Consolidated Water (CWCO) closed the latest trading day at $27.47, indicating a +0.7% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.

Shares of the developer and operator of desalination plants have depreciated by 10.09% over the course of the past month, underperforming the Utilities sector's gain of 2.57% and the S&P 500's gain of 2.97%.

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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 6.17% higher. Consolidated Water presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Consolidated Water is holding a Forward P/E ratio of 20.67. This represents a premium compared to its industry's average Forward P/E of 20.47.

We can also see that CWCO currently has a PEG ratio of 2.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Water Supply was holding an average PEG ratio of 2.7 at yesterday's closing price.

The Utility - Water Supply industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 11, finds itself in the top 5% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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