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

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Clearfield (CLFD - Free Report) closed the most recent trading day at $61, moving -0.94% from the previous trading session. This change lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 12.91%.

Prior to today's trading, shares of the maker of fiber optic management products had lost 12.92% over the past month. This has lagged the Computer and Technology sector's loss of 6.64% and the S&P 500's loss of 4.54% in that time.

Investors will be hoping for strength from Clearfield as it approaches its next earnings release. On that day, Clearfield is projected to report earnings of $0.60 per share, which would represent a year-over-year decline of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $71.15 million, up 32.99% from the prior-year quarter.

CLFD's full-year Zacks Consensus Estimates are calling for earnings of $4.39 per share and revenue of $381.7 million. These results would represent year-over-year changes of +23.66% and +40.91%, respectively.

It is also important to note the recent changes to analyst estimates for Clearfield. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.01% lower. Clearfield currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Clearfield is currently trading at a Forward P/E ratio of 14.04. This valuation marks a premium compared to its industry's average Forward P/E of 13.3.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.

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


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