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VeriSign (VRSN) Rises But Trails Market: What Investors Should Know

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VeriSign (VRSN - Free Report) closed the latest trading day at $200.25, indicating a +0.69% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.25%. Elsewhere, the Dow saw an upswing of 0.97%, while the tech-heavy Nasdaq appreciated by 1.3%.

Shares of the internet infrastructure services provider witnessed a loss of 1.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.42% and the S&P 500's gain of 1.58%.

Market participants will be closely following the financial results of VeriSign in its upcoming release. The company plans to announce its earnings on February 8, 2024. The company is forecasted to report an EPS of $1.83, showcasing a 7.65% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $381.01 million, up 3.2% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for VeriSign. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. VeriSign currently has a Zacks Rank of #3 (Hold).

In terms of valuation, VeriSign is currently trading at a Forward P/E ratio of 25.43. This represents a premium compared to its industry's average Forward P/E of 22.16.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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