Back to top
Read MoreHide Full Article

Encore Wire Corp (WIRE - Free Report) posted a blowout quarter on 10/31/17 by beating the Zacks Consensus Estimate by $0.39 for a 139% positive earnings surprise.  Prior to that report, the stock was a Zacks Rank #5 (Strong Sell) and the purpose of this article is to show why it had that ranking.

Description

Encore Wire Corporation is a low-cost manufacturer of copper electrical building wire and cable. The Company is a significant supplier of both residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.

Estimate Revisions

The single largest factor that influences the Zacks Rank is the consensus of all the analysts that submit estimates to Zacks. This means brokerages of all sizes tha publish reports on stock are counted in this average, and when the consensus is falling, the stocks Rank slides as well.

Look at this table for WIRE:

The table shows the current quarter holding serve over the last 90 days, but the estimate for this year and next had been shrinking.  That is not what investors want to see.

The fact that the company posted a big beat just speaks to the fact that analysts are having a difficult time projecting earnings for this stock.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Encore Wire Corporation (WIRE) - free report >>


More from Zacks Bear of the Day

You May Like