NeoPhotonics (NPTN - Free Report) closed the most recent trading day at $8.92, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq added 0.43%.
Prior to today's trading, shares of the maker of components for communications networks had gained 2.91% over the past month. This has lagged the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 6.78% in that time.
Investors will be hoping for strength from NPTN as it approaches its next earnings release, which is expected to be August 4, 2020. In that report, analysts expect NPTN to post earnings of $0.12 per share. This would mark year-over-year growth of 500%. Our most recent consensus estimate is calling for quarterly revenue of $99.68 million, up 22.03% from the year-ago period.
NPTN's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $398.57 million. These results would represent year-over-year changes of +5600% and +11.7%, respectively.
Investors might also notice recent changes to analyst estimates for NPTN. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.15% higher. NPTN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NPTN is holding a Forward P/E ratio of 15.57. Its industry sports an average Forward P/E of 29.6, so we one might conclude that NPTN is trading at a discount comparatively.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.