Back to top

Image: Bigstock

Babcock & Wilcow Enterprises (BW) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Babcock & Wilcow Enterprises (BW - Free Report) closed at $7.30, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the power generation equipment company had gained 6.79% over the past month. This has outpaced the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.

Wall Street will be looking for positivity from Babcock & Wilcow Enterprises as it approaches its next earnings report date. On that day, Babcock & Wilcow Enterprises is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 36.36%. Meanwhile, our latest consensus estimate is calling for revenue of $248.1 million, up 55.06% from the prior-year quarter.

BW's full-year Zacks Consensus Estimates are calling for earnings of $0.22 per share and revenue of $941 million. These results would represent year-over-year changes of -15.38% and +30.08%, respectively.

Any recent changes to analyst estimates for Babcock & Wilcow Enterprises should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Babcock & Wilcow Enterprises is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Babcock & Wilcow Enterprises is currently trading at a Forward P/E ratio of 32.86. Its industry sports an average Forward P/E of 12.44, so we one might conclude that Babcock & Wilcow Enterprises is trading at a premium comparatively.

The Electronics - Power Generation industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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 BW in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Babcock (BW) - free report >>

Published in