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Lincoln Educational Services Corporation (LINC) Gains But Lags Market: What You Should Know

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In the latest trading session, Lincoln Educational Services Corporation (LINC - Free Report) closed at $6.90, marking a +0.73% move from the previous day. This move lagged the S&P 500's daily gain of 2.76%. Elsewhere, the Dow gained 2.43%, while the tech-heavy Nasdaq added 0.13%.

Heading into today, shares of the company had gained 15.51% over the past month, outpacing the Consumer Discretionary sector's gain of 2.68% and the S&P 500's gain of 4.44% in that time.

Investors will be hoping for strength from Lincoln Educational Services Corporation as it approaches its next earnings release. On that day, Lincoln Educational Services Corporation is projected to report earnings of $0.06 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $83.76 million, up 4.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.65 per share and revenue of $355.2 million. These totals would mark changes of -37.5% and +5.92%, respectively, from last year.

Any recent changes to analyst estimates for Lincoln Educational Services Corporation should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lincoln Educational Services Corporation currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Lincoln Educational Services Corporation is currently trading at a Forward P/E ratio of 10.62. This represents a discount compared to its industry's average Forward P/E of 15.37.

It is also worth noting that LINC currently has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LINC's industry had an average PEG ratio of 0.82 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.

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


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