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

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In the latest trading session, ADT (ADT - Free Report) closed at $6.98, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Coming into today, shares of the home security company had lost 12.13% in the past month. In that same time, the Industrial Products sector lost 4.87%, while the S&P 500 lost 1.21%.

Investors will be hoping for strength from ADT as it approaches 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.

ADT's full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $6.67 billion. These results would represent year-over-year changes of +208.33% and +4.35%, respectively.

Investors might also notice recent changes to analyst estimates for ADT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. The Zacks Consensus EPS estimate has moved 5.56% lower within the past month. ADT currently has a Zacks Rank of #4 (Sell).

In terms of valuation, ADT is currently trading at a Forward P/E ratio of 9.5. Its industry sports an average Forward P/E of 18.61, so we one might conclude that ADT is trading at a discount comparatively.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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