Back to top

Image: Bigstock

Encore Wire (WIRE) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Encore Wire (WIRE - Free Report) closed at $171.31, marking a +0.56% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.

Coming into today, shares of the copper wire maker had gained 23.73% in the past month. In that same time, the Industrial Products sector gained 4.52%, while the S&P 500 gained 5.64%.

Investors will be hoping for strength from Encore Wire as it approaches its next earnings release, which is expected to be February 14, 2023. In that report, analysts expect Encore Wire to post earnings of $4.61 per share. This would mark a year-over-year decline of 33.29%.

Any recent changes to analyst estimates for Encore Wire should also be noted by investors. These revisions help to show the ever-changing nature of near-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Encore Wire is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Encore Wire is currently trading at a Forward P/E ratio of 11.04. Its industry sports an average Forward P/E of 11.04, so we one might conclude that Encore Wire is trading at a no noticeable deviation comparatively.

The Wire and Cable Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Encore Wire Corporation (WIRE) - free report >>

Published in