Back to top

Image: Bigstock

Clearfield (CLFD) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Clearfield (CLFD - Free Report) closed at $105.65 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 0.61% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.17%.

Heading into today, shares of the maker of fiber optic management products had gained 9.13% over the past month, outpacing the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% in that time.

Investors will be hoping for strength from Clearfield as it approaches its next earnings release. The company is expected to report EPS of $1.02, up 36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $85 million, up 66.31% from the prior-year quarter.

CLFD's full-year Zacks Consensus Estimates are calling for earnings of $4.95 per share and revenue of $386.5 million. These results would represent year-over-year changes of +39.44% and +42.68%, respectively.

Investors might also notice recent changes to analyst estimates for Clearfield. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 37.5% higher. Clearfield is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Clearfield is currently trading at a Forward P/E ratio of 21.08. For comparison, its industry has an average Forward P/E of 19.22, which means Clearfield is trading at a premium to the group.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


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


Clearfield, Inc. (CLFD) - free report >>

Published in