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Consolidated Water (CWCO) Declines More Than Market: Some Information for Investors

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Consolidated Water (CWCO - Free Report) ended the recent trading session at $25.56, demonstrating a -1.46% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the developer and operator of desalination plants witnessed a gain of 1.09% over the previous month, beating the performance of the Utilities sector with its loss of 0.14% and underperforming the S&P 500's gain of 4.46%.

Investors will be eagerly watching for the performance of Consolidated Water in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.26, marking a 52.73% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $31.77 million, indicating a 36.27% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.25 per share and a revenue of $137.5 million, demonstrating changes of -35.23% and -23.7%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Consolidated Water. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Consolidated Water presently features a Zacks Rank of #4 (Sell).

Investors should also note Consolidated Water's current valuation metrics, including its Forward P/E ratio of 20.7. This signifies a discount in comparison to the average Forward P/E of 21.7 for its industry.

Investors should also note that CWCO has a PEG ratio of 2.59 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Water Supply industry stood at 3.35 at the close of the market yesterday.

The Utility - Water Supply industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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