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Encore Wire (WIRE) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Encore Wire (WIRE - Free Report) closed at $143.63, marking a +1.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.

Heading into today, shares of the copper wire maker had lost 1.34% over the past month, lagging the Industrial Products sector's gain of 3.55% and the S&P 500's loss of 0.23% in that time.

Wall Street will be looking for positivity from Encore Wire as it approaches its next earnings report date. In that report, analysts expect Encore Wire to post earnings of $4.61 per share. This would mark a year-over-year decline of 33.29%.

Any recent changes to analyst estimates for Encore Wire should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Encore Wire is currently a Zacks Rank #3 (Hold).

Investors should also note Encore Wire's current valuation metrics, including its Forward P/E ratio of 9.18. For comparison, its industry has an average Forward P/E of 9.18, which means Encore Wire is trading at a no noticeable deviation to the group.

The Wire and Cable Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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