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Consolidated Water (CWCO) Stock Falls Amid Market Uptick: What Investors Need to Know

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Consolidated Water (CWCO - Free Report) closed at $29.60 in the latest trading session, marking a -1.43% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.

Heading into today, shares of the developer and operator of desalination plants had gained 12.09% over the past month, outpacing the Utilities sector's gain of 0.34% and the S&P 500's gain of 3.92%.

The upcoming earnings release of Consolidated Water will be of great interest to investors. It is anticipated that the company will report an EPS of $0.2, marking a 23.08% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $32.69 million, up 0.65% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.9 per share and revenue of $132.23 million. These totals would mark changes of -19.64% and -1.3%, respectively, from last 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. Currently, Consolidated Water is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Consolidated Water currently has a Forward P/E ratio of 33.24. This valuation marks a premium compared to its industry average Forward P/E of 22.72.

The Utility - Water Supply industry is part of the Utilities sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 13% of all industries, numbering over 250.

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.

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


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