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Calix (CALX) Gains As Market Dips: What You Should Know

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Calix (CALX - Free Report) closed the most recent trading day at $31.47, moving +0.1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.39%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the maker of telecommunications equipment had gained 30.73% in the past month. In that same time, the Computer and Technology sector gained 7.06%, while the S&P 500 gained 4.06%.

Investors will be hoping for strength from CALX as it approaches its next earnings release. In that report, analysts expect CALX to post earnings of $0.34 per share. This would mark year-over-year growth of 277.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors might also notice recent changes to analyst estimates for CALX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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).

In terms of valuation, CALX is currently trading at a Forward P/E ratio of 36. Its industry sports an average Forward P/E of 72.1, so we one might conclude that CALX is trading at a discount comparatively.

The Communication - Infrastructure industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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