Seawater desalination and water distribution services
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Why Consolidated Water (CWCO) is a Top Momentum Stock for the Long-Term
ZACKSยท 2025-11-27 15:51
Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance over the next 30 days [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [4] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Style Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [5] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who want to consider value, growth, and momentum simultaneously [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [10] Stock to Watch: Consolidated Water Co. (CWCO) - Consolidated Water Co. operates seawater desalination plants and water distribution systems in areas with limited potable water supplies, focusing on regions with high tourist properties and growing populations [12] - CWCO holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, with a Momentum Style Score of B, indicating potential for upward movement [13] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.12 to $1.24 per share for fiscal 2025, and an average earnings surprise of +47.5% [13][14]