Consolidated Water Hits A 52-Week High On Expansion Plans
Zacks Investment Research | Mar 15, 2018 10:04PM ET
Consolidated Water Co. Ltd. (NASDAQ:CWCO) 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 (NYSE:PEG) , American States Water (NYSE:AWR) and NextEra Energy (NYSE:NEE) . All three companies carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.