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Franklin Covey (FC) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Franklin Covey (FC - Free Report) closed at $42.70, marking a -0.91% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the corporate training and consultanting company had lost 3.43% over the past month, outpacing the Business Services sector's loss of 4.95% and lagging the S&P 500's gain of 2.08% in that time.

Franklin Covey will be looking to display strength as it nears its next earnings release. On that day, Franklin Covey is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 25.64%. Our most recent consensus estimate is calling for quarterly revenue of $81.6 million, up 3.54% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Franklin Covey. These recent revisions tend to reflect the evolving nature of short-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. 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. Franklin Covey is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Franklin Covey currently has a Forward P/E ratio of 26.48. Its industry sports an average Forward P/E of 20.99, so we one might conclude that Franklin Covey is trading at a premium comparatively.

It is also worth noting that FC currently has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consulting Services was holding an average PEG ratio of 1.23 at yesterday's closing price.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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