10 Worst Performing Utilities Stocks to Buy According to Analysts

5) Consolidated Water Co. Ltd. (NASDAQ:CWCO)

% Decline Over Past Year: ~10.2%

Average Upside Potential: ~42.2%

Number of Hedge Fund Holders: 12

Consolidated Water Co. Ltd. (NASDAQ:CWCO) is engaged in designing, constructing, managing, and operating water production and water treatment plants. In Q3 2024, the company’s revenue and profitability remained consistent with its expectations, considering the completion of 2 large design-build projects. Consolidated Water Co. Ltd. (NASDAQ:CWCO) highlighted the continuing trend of increasing retail water sales in its exclusive utility service area on Grand Cayman because of continued business and population growth on the island.

Consolidated Water Co. Ltd. (NASDAQ:CWCO)’s ongoing $147 million design-build-operate desalination plant project in Hawaii has been progressing through development towards the construction phase. At the macro level, higher water scarcity has been developing interest in advanced treatment and desalination solutions for impaired resources. With the rise in water supply challenges, there continues to be increased demand for the specialized capabilities Consolidated Water Co. Ltd. (NASDAQ:CWCO) provides.

Some of the specific positive factors include the healthy water sales growth in Grand Cayman and long-term recurring revenue from Consolidated Water Co. Ltd. (NASDAQ:CWCO)’s Caribbean-based bulk water business and the US-based O&M business. Therefore, growth in the utility sector equates to increased demand for water infrastructure, desalination, and treatment services, aiding the company’s growth prospects.