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Harmonic (HLIT) Gains As Market Dips: What You Should Know

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In the latest trading session, Harmonic (HLIT - Free Report) closed at $11.34, marking a +1.25% move from the previous day. This change outpaced the S&P 500's 0.14% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the video services provider had gained 3.61% over the past month. This has outpaced the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.

Harmonic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Harmonic to post earnings of $0.14 per share. This would mark a year-over-year decline of 30%. Our most recent consensus estimate is calling for quarterly revenue of $151.93 million, up 15.51% from the year-ago period.

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

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Harmonic is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Harmonic currently has a Forward P/E ratio of 21.96. For comparison, its industry has an average Forward P/E of 19.08, which means Harmonic is trading at a premium to the group.

It is also worth noting that HLIT currently has a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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