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Consolidated Water Hits a 52-Week High on Expansion Plans

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Consolidated Water Co. Ltd. (CWCO - Free Report) hit a new 52-week high of $14.90 before closing the session a bit lower at $14.80 on Mar 15. The stock has returned 39.6% compared with the S&P 500 index’s rally of 15.8% in the past year.

Over the past 52 weeks, Consolidated Water’s shares have ranged from a low of $10.15 to a high of $14.90. Average volume of shares traded over the last three months is approximately 0.04 million.



What's Driving Consolidated Water Higher?

Consolidated Water develops & operates seawater desalination plants and engages in water distribution systems. It has operations in the United States as well as in other countries across the globe. To expand its operations, the company is looking for opportunities to tap markets that require potable water.

In this regard, the Rosarito project in Mexico is noteworthy. The project encompasses the construction, operation and minority ownership of a 100-million gallon per say seawater reverse osmosis desalination plant. On Mar 7 2018, Consolidated Water announced execution of a subscription agreement for the equity funding required to construct and operate the plant and accompanying pipeline.

This indicates the company’s progress in the Rosarito project, which has instilled optimism among investors and culminated into its latest 52-week high share price.

It is imperative to mention here successful renewal of several long-term water supply agreements, in which has enabled greater visibility of long-term cash flows, has made the company confident enough to invest in projects like Rosarito. With its fourth-quarter 2017 results scheduled for next week, investors are expecting to come across more such agreements from the company’s part. This is another factor supporting the uptick of share price.

Coming to its earnings history, the company delivered an average positive earnings surprise of 11.99% in the past four quarters.

Zacks Rank & Stocks to Consider

Consolidated Water carries a Zacks Rank #3 (Hold).

A few other better-ranked stocks in the same sector are Public Service Enterprise Group (PEG - Free Report) , American States Water (AWR - Free Report) and NextEra Energy (NEE - Free Report) . All three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Public Service Enterprise posted an average positive earnings surprise of 4.43% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings moved up 2 cents in the last 30 days.

American States Water delivered an average positive earnings surprise of 11.29% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings rose by a penny in the last 30 days.

NextEra Energy pulled off an average positive earnings surprise of 4.75% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings moved up by a nickel in the last 30 days.

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