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ADT (ADT) Stock Moves -0.86%: What You Should Know

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ADT (ADT - Free Report) closed the most recent trading day at $6.94, moving -0.86% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.

Coming into today, shares of the home security company had lost 15.15% in the past month. In that same time, the Industrial Products sector lost 6.6%, while the S&P 500 lost 3.02%.

ADT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.13, up 1400% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 5.13% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.74 per share and revenue of $6.67 billion. These totals would mark changes of +208.33% and +4.35%, respectively, from last year.

Any recent changes to analyst estimates for ADT 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 5.56% lower. ADT is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, ADT currently has a Forward P/E ratio of 9.46. This valuation marks a discount compared to its industry's average Forward P/E of 18.85.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.

To follow ADT in the coming trading sessions, be sure to utilize Zacks.com.


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