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Donnelley Financial Solutions (DFIN) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Donnelley Financial Solutions (DFIN - Free Report) closed at $36.87, marking a -0.94% move from the previous day. This change lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the financial communications and data services provider had lost 20.57% over the past month, lagging the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.

Donnelley Financial Solutions will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.26, up 250% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $226 million, up 7.47% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Donnelley Financial Solutions. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Donnelley Financial Solutions is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Donnelley Financial Solutions has a Forward P/E ratio of 6.55 right now. For comparison, its industry has an average Forward P/E of 36.5, which means Donnelley Financial Solutions is trading at a discount to the group.

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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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