Why the Market Dipped But Franklin Covey (FC) Gained Today

FC

The latest trading session saw Franklin Covey (FC - Free Report) ending at $39.67, denoting a +1.07% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 0.59%.

The the stock of corporate training and consultanting company has risen by 2.56% in the past month, lagging the Business Services sector's gain of 8.45% and the S&P 500's gain of 7.87%.

The investment community will be paying close attention to the earnings performance of Franklin Covey in its upcoming release. The company is predicted to post an EPS of $0.23, indicating a 28.13% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $67.03 million, indicating a 3.38% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.94 per share and revenue of $301.28 million, indicating changes of +56.45% and +7.4%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Franklin Covey. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 19.05% higher. Franklin Covey presently features a Zacks Rank of #3 (Hold).

Investors should also note Franklin Covey's current valuation metrics, including its Forward P/E ratio of 20.26. This expresses a discount compared to the average Forward P/E of 21.41 of its industry.

We can additionally observe that FC currently boasts a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Consulting Services stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.

The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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