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Zix (ZIXI) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Zix (ZIXI - Free Report) closed at $6.23, marking a +1.63% move from the previous day. This change outpaced the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.42%.

Heading into today, shares of the e-mail encryption company had gained 2.85% over the past month, outpacing the Computer and Technology sector's loss of 1.34% and the S&P 500's loss of 2.51% in that time.

ZIXI will be looking to display strength as it nears its next earnings release, which is expected to be November 9, 2020. In that report, analysts expect ZIXI to post earnings of $0.15 per share. This would mark year-over-year growth of 15.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $53.76 million, up 12.39% from the year-ago period.

ZIXI's full-year Zacks Consensus Estimates are calling for earnings of $0.59 per share and revenue of $214.80 million. These results would represent year-over-year changes of +145.83% and +23.85%, respectively.

Investors should also note any recent changes to analyst estimates for ZIXI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZIXI is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ZIXI has a Forward P/E ratio of 10.39 right now. This valuation marks a discount compared to its industry's average Forward P/E of 36.27.

We can also see that ZIXI currently has a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Security stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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