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Encore Wire (WIRE) Beats Stock Market Upswing: What Investors Need to Know

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Encore Wire (WIRE - Free Report) closed the most recent trading day at $219.14, moving +1.26% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw an increase of 0.19%.

Prior to today's trading, shares of the copper wire maker had gained 0.74% over the past month. This has outpaced the Industrial Products sector's loss of 1.63% and lagged the S&P 500's gain of 2.48% in that time.

The upcoming earnings release of Encore Wire will be of great interest to investors. The company is predicted to post an EPS of $4.05, indicating a 51.09% decline compared to the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Encore Wire. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Encore Wire currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Encore Wire is presently trading at a Forward P/E ratio of 13.62. Its industry sports an average Forward P/E of 13.74, so one might conclude that Encore Wire is trading at a discount comparatively.

The Wire and Cable Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 192, placing it within the bottom 24% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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