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Yext (YEXT) Gains But Lags Market: What You Should Know

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In the latest trading session, Yext (YEXT - Free Report) closed at $5.72, marking a +0.18% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq increased by 1.68%.

Prior to today's trading, shares of the software developer had gained 0.71% over the past month. This has outpaced the Business Services sector's loss of 1.98% and lagged the S&P 500's gain of 0.8% in that time.

The investment community will be paying close attention to the earnings performance of Yext in its upcoming release. The company is expected to report EPS of $0.06, down 25% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $96.23 million, indicating a 3.23% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.36 per share and revenue of $400.08 million, indicating changes of +9.09% and -1.05%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Yext. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Yext presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Yext is currently exchanging hands at a Forward P/E ratio of 15.86. This indicates a discount in contrast to its industry's Forward P/E of 24.74.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

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