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Calix (CALX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Calix (CALX - Free Report) closed at $24.80, marking a -0.36% move from the previous day. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Prior to today's trading, shares of the maker of telecommunications equipment had gained 3.41% over the past month. This has lagged the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.58% in that time.

Wall Street will be looking for positivity from CALX as it approaches its next earnings report date. On that day, CALX is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 277.78%. Our most recent consensus estimate is calling for quarterly revenue of $158.85 million, up 32.17% from the year-ago period.

CALX's full-year Zacks Consensus Estimates are calling for earnings of $0.87 per share and revenue of $530.05 million. These results would represent year-over-year changes of +1350% and +24.91%, respectively.

It is also important to note the recent changes to analyst estimates for CALX. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. CALX is currently a Zacks Rank #2 (Buy).

Looking at its valuation, CALX is holding a Forward P/E ratio of 28.5. For comparison, its industry has an average Forward P/E of 68.38, which means CALX is trading at a discount to the group.

The Communication - Infrastructure industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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