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Encore Wire (WIRE) Gains But Lags Market: What You Should Know

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Encore Wire (WIRE - Free Report) closed the most recent trading day at $197.28, moving +0.21% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.

Coming into today, shares of the copper wire maker had gained 14.47% in the past month. In that same time, the Industrial Products sector lost 0.8%, while the S&P 500 lost 4.54%.

Investors will be hoping for strength from Encore Wire as it approaches its next earnings release. On that day, Encore Wire is projected to report earnings of $5.44 per share, which would represent a year-over-year decline of 31.66%.

Any recent changes to analyst estimates for Encore Wire 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. 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.

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. The Zacks Consensus EPS estimate has moved 28.06% higher within the past month. Encore Wire is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Encore Wire is currently trading at a Forward P/E ratio of 9.96. For comparison, its industry has an average Forward P/E of 9.96, 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 3, which puts it in the top 2% 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.

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

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