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Why Franklin Covey (FC) Dipped More Than Broader Market Today

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In the latest trading session, Franklin Covey (FC - Free Report) closed at $39.15, marking a -1.39% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.41%.

The corporate training and consultanting company's stock has dropped by 1.32% in the past month, falling short of the Business Services sector's gain of 5.27% and the S&P 500's gain of 2.7%.

Market participants will be closely following the financial results of Franklin Covey in its upcoming release. In that report, analysts expect Franklin Covey to post earnings of $0.05 per share. This would mark a year-over-year decline of 58.33%. Meanwhile, our latest consensus estimate is calling for revenue of $62.03 million, up 0.43% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $299.55 million. These totals would mark changes of +36.29% and +6.78%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Franklin Covey. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, the Zacks Consensus EPS estimate remained stagnant. Franklin Covey is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Franklin Covey is holding a Forward P/E ratio of 23.46. This expresses a discount compared to the average Forward P/E of 24.27 of its industry.

Investors should also note that FC has a PEG ratio of 1.17 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.39.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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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