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Napco (NSSC) Gains As Market Dips: What You Should Know

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In the latest trading session, Napco (NSSC - Free Report) closed at $28.60, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the security products and software company had gained 14.41% over the past month. This has outpaced the Industrial Products sector's loss of 5.38% and the S&P 500's gain of 2.87% in that time.

Wall Street will be looking for positivity from NSSC as it approaches its next earnings report date. In that report, analysts expect NSSC to post earnings of $0.25 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $29.39 million, up 7.82% from the year-ago period.

It is also important to note the recent changes to analyst estimates for NSSC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NSSC is currently a Zacks Rank #2 (Buy).

Digging into valuation, NSSC currently has a Forward P/E ratio of 33.25. For comparison, its industry has an average Forward P/E of 21.37, which means NSSC is trading at a premium to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 NSSC in the coming trading sessions, be sure to utilize Zacks.com.


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