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EGain (EGAN) Stock Sinks As Market Gains: Here's Why

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eGain (EGAN - Free Report) closed the latest trading day at $6.43, indicating a -0.16% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.

Coming into today, shares of the maker of customer engagement software had gained 10.46% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 5.11%.

Market participants will be closely following the financial results of eGain in its upcoming release. It is anticipated that the company will report an EPS of $0.07, marking a 133.33% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $23.01 million, unchanged from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.31 per share and a revenue of $93.04 million, signifying shifts of +24% and -5.07%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for eGain. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, eGain is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, eGain is at present trading with a Forward P/E ratio of 20.77. This indicates a discount in contrast to its industry's Forward P/E of 30.66.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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