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Encore Wire (WIRE) Dips More Than Broader Markets: What You Should Know
Encore Wire (WIRE - Free Report) closed at $172.42 in the latest trading session, marking a -1.84% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 3.27%.
Prior to today's trading, shares of the copper wire maker had lost 11.23% over the past month. This has lagged the Industrial Products sector's loss of 6.6% and the S&P 500's loss of 3.02% in that time.
Encore Wire will be looking to display strength as it nears its next earnings release. In that report, analysts expect Encore Wire to post earnings of $5.44 per share. This would mark a year-over-year decline of 31.66%.
Any recent changes to analyst estimates for Encore Wire should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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 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 currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Encore Wire is currently trading at a Forward P/E ratio of 8.89. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.89.
The Wire and Cable Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.