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ADT (ADT) Dips More Than Broader Markets: What You Should Know

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ADT (ADT - Free Report) closed the most recent trading day at $6.91, moving -0.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.

Heading into today, shares of the home security company had lost 8.79% over the past month, lagging the Industrial Products sector's loss of 6.62% and the S&P 500's gain of 1.48% in that time.

Investors will be hoping for strength from ADT as it approaches its next earnings release. In that report, analysts expect ADT to post earnings of $0.13 per share. This would mark year-over-year growth of 1400%. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 5.13% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for ADT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADT is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note ADT's current valuation metrics, including its Forward P/E ratio of 9.39. This valuation marks a discount compared to its industry's average Forward P/E of 18.13.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.

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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