Back to top

Image: Bigstock

L.B. Foster (FSTR) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, L.B. Foster (FSTR - Free Report) closed at $19.05, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.18%.

Heading into today, shares of the railroad track manufacturer had gained 14.35% over the past month, outpacing the Basic Materials sector's loss of 1.53% and the S&P 500's gain of 0.04% in that time.

Wall Street will be looking for positivity from FSTR as it approaches its next earnings report date. On that day, FSTR is projected to report earnings of $0.27 per share, which would represent a year-over-year decline of 34.15%. Our most recent consensus estimate is calling for quarterly revenue of $141.74 million, down 2.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.74 per share and revenue of $534.61 million, which would represent changes of -69.42% and +5.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FSTR. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. FSTR currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, FSTR is holding a Forward P/E ratio of 26.16. This represents a premium compared to its industry's average Forward P/E of 7.34.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


L.B. Foster Company (FSTR) - free report >>

Published in