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

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Donnelley Financial Solutions (DFIN - Free Report) closed at $33.57 in the latest trading session, marking a +0.93% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Prior to today's trading, shares of the financial communications and data services provider had gained 7.15% over the past month. This has outpaced the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.

Donnelley Financial Solutions will be looking to display strength as it nears its next earnings release. In that report, analysts expect Donnelley Financial Solutions to post earnings of $1.33 per share. This would mark year-over-year growth of 15.65%. Our most recent consensus estimate is calling for quarterly revenue of $220.4 million, down 10.15% from the year-ago period.

DFIN's full-year Zacks Consensus Estimates are calling for earnings of $4.73 per share and revenue of $906 million. These results would represent year-over-year changes of -3.27% and -8.79%, respectively.

It is also important to note the recent changes to analyst estimates for Donnelley Financial Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Donnelley Financial Solutions has a Forward P/E ratio of 7.03 right now. For comparison, its industry has an average Forward P/E of 37.39, 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 industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.

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


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