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Universal Technical Institute (UTI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, Universal Technical Institute (UTI - Free Report) reached $14.96, with a -1.97% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 1.46%. On the other hand, the Dow registered a loss of 1.24%, and the technology-centric Nasdaq decreased by 1.63%.

Heading into today, shares of the school for auto, motorcycle and marine technicians had gained 4.59% over the past month, outpacing the Consumer Discretionary sector's loss of 2.31% and the S&P 500's gain of 1.6% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Universal Technical Institute in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.15, reflecting a 275% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $177.01 million, up 8.05% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.70 per share and revenue of $718.16 million, indicating changes of +438.46% and +18.23%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Universal Technical Institute. Such recent modifications usually signify the changing landscape of 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Universal Technical Institute is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Universal Technical Institute is currently trading at a Forward P/E ratio of 21.7. This valuation marks a premium compared to its industry's average Forward P/E of 18.89.

It is also worth noting that UTI currently has a PEG ratio of 1.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Schools industry had an average PEG ratio of 1.15.

The Schools industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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