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Endava PLC Sponsored ADR (DAVA) Gains But Lags Market: What You Should Know

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Endava PLC Sponsored ADR (DAVA - Free Report) closed at $71.81 in the latest trading session, marking a +0.91% move from the prior day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.

Prior to today's trading, shares of the company had lost 8.66% over the past month. This has lagged the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 4.61% in that time.

Investors will be hoping for strength from Endava PLC Sponsored ADR as it approaches its next earnings release. On that day, Endava PLC Sponsored ADR is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 7.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $240.65 million, up 11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $998.65 million. These totals would mark changes of +10.51% and +14.27%, respectively, from last year.

Any recent changes to analyst estimates for Endava PLC Sponsored ADR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Endava PLC Sponsored ADR currently has a Zacks Rank of #2 (Buy).

Investors should also note Endava PLC Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 25.03. For comparison, its industry has an average Forward P/E of 19.36, which means Endava PLC Sponsored ADR is trading at a premium to the group.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DAVA in the coming trading sessions, be sure to utilize Zacks.com.


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