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

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Napco (NSSC - Free Report) closed at $27.61 in the latest trading session, marking a +0.18% move from the prior day. This change outpaced the S&P 500's 0.31% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the security products and software company had lost 11.41% over the past month, lagging the Industrial Products sector's gain of 6.23% and the S&P 500's gain of 2.92% in that time.

NSSC will be looking to display strength as it nears its next earnings release. In that report, analysts expect NSSC to post earnings of $0.14 per share. This would mark year-over-year growth of 68.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.88 million, up 10.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.86 per share and revenue of $113.50 million. These totals would mark changes of +29.55% and +10.27%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NSSC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NSSC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NSSC has a Forward P/E ratio of 32.23 right now. For comparison, its industry has an average Forward P/E of 21.36, 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 industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.


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