Franklin Covey (FC) Falls More Steeply Than Broader Market: What Investors Need to Know

FC

Franklin Covey (FC - Free Report) ended the recent trading session at $37.75, demonstrating a -1.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.41%.

Prior to today's trading, shares of the corporate training and consultanting company had lost 5.88% over the past month. This has lagged the Business Services sector's gain of 7.65% and the S&P 500's gain of 4.83% in that time.

Investors will be eagerly watching for the performance of Franklin Covey in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.05, reflecting a 58.33% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $62.03 million, indicating a 0.43% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and a revenue of $299.55 million, representing changes of +36.29% and +6.78%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Franklin Covey. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Franklin Covey is currently a Zacks Rank #3 (Hold).

Digging into valuation, Franklin Covey currently has a Forward P/E ratio of 22.62. This denotes a discount relative to the industry's average Forward P/E of 23.46.

One should further note that FC currently holds a PEG ratio of 1.13. 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. The average PEG ratio for the Consulting Services industry stood at 1.5 at the close of the market yesterday.

The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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