Back to top

Image: Bigstock

NCR (NCR) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

In the latest market close, NCR reached $26.37, with a +1.5% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.39%, while the tech-heavy Nasdaq appreciated by 1.35%.

The maker of ATMs and other hardware and software to handle payments's stock has dropped by 13.37% in the past month, falling short of the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.

The upcoming earnings release of NCR will be of great interest to investors. The company is forecasted to report an EPS of $0.95, showcasing a 18.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.01 billion, reflecting a 1.95% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $7.95 billion, demonstrating changes of +31.68% and +1.4%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for NCR. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. NCR is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, NCR is currently exchanging hands at a Forward P/E ratio of 7.52. This expresses a discount compared to the average Forward P/E of 15.68 of its industry.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Published in