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ExlService Holdings (EXLS) Gains But Lags Market: What You Should Know
ExlService Holdings (EXLS - Free Report) closed at $161.83 in the latest trading session, marking a +0.47% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.
Heading into today, shares of the provider of outsourcing services had lost 2.3% over the past month, lagging the Business Services sector's gain of 0.14% and the S&P 500's gain of 2.28% in that time.
Investors will be hoping for strength from ExlService Holdings as it approaches its next earnings release. In that report, analysts expect ExlService Holdings to post earnings of $1.61 per share. This would mark year-over-year growth of 13.38%. Meanwhile, our latest consensus estimate is calling for revenue of $377.55 million, up 14.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $1.59 billion, which would represent changes of +12.46% and +12.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ExlService Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 remained stagnant within the past month. ExlService Holdings is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, ExlService Holdings is holding a Forward P/E ratio of 23.79. This represents a premium compared to its industry's average Forward P/E of 15.21.
It is also worth noting that EXLS currently has a PEG ratio of 1.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Outsourcing industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Outsourcing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.