Price To Earnings Valuation in Focus For California Water Service Group (NYSE:CWT)

Focusing in on the valuation of California Water Service Group (NYSE:CWT), we can take a look at several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio. This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued.

A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. California Water Service Group currently has a PEG ratio of 1.28.Investors might be preparing to do a portfolio evaluation as we move towards the close of the year. There may be plenty of big winners from the first half of the year, but there may also be some underperformers that need to be reviewed. Making sure that the portfolio stays in balance can help prepare the investor for success over the next few quarters. With the stock market still riding high, investors may be wondering how to play the market into the near future. If market momentum starts to shift, investors may need to be ready to make some tougher decisions. Being prepared for any market situation can help the investor cope with rough waters when the time comes.   

Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. California Water Service Group (NYSE:CWT) currently has an average analyst recommendation of 3.20 according to analysts.

This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $40.83 on the shares.

Technical Indicators
In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently 1.02% away from its 50-day simple moving average and 7.68% away from the 200 day average. Based on a recent trade, the shares are -6.80% away from the 52-week high and 23.72% from the 52-week low. The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements.

An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for California Water Service Group(NYSE:CWT) currently stands at 43.67.

Performance
California Water Service Group has posted trailing 12 months earnings of $3.47 per share. The company has seen a change of 259.50% earnings per share this year. Analysts are predicting 16.33% for the company next year.

The firm is yielding 2.10% return on assets and 8.40% return on equity.

Investing in the stock market can sometimes draw intense emotion from individual investors. When the market slips into a chaotic state, some investors may let their emotions get the best of them which can lead to impulsive decisions. On the other side of the coin, market chaos may cause certain investors to freeze in a panic. This may mean that the investor becomes shaken to the point that they are unable to make any decisions let alone an educated one. Discipline is a quality shared by many successful traders and investors. Staying committed to the plan, whether short-term or long-term, can help investors make it through those times of extreme market uncertainty. 

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