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ScanSource (SCSC) Stock Sinks As Market Gains: What You Should Know

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ScanSource (SCSC - Free Report) closed at $36.71 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day.

Prior to today's trading, shares of the technology products distributor had gained 8.23% over the past month. This has outpaced the Industrial Products sector's loss of 3.02% and the S&P 500's loss of 0.12% in that time.

Wall Street will be looking for positivity from SCSC as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 78.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $802.2 million, up 2.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $3.32 billion, which would represent changes of +17.88% and +4.65%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SCSC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 remained stagnant. SCSC is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that SCSC has a Forward P/E ratio of 11.48 right now. This represents a discount compared to its industry's average Forward P/E of 22.8.

The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.

To follow SCSC in the coming trading sessions, be sure to utilize Zacks.com.


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