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Universal Technical Institute (UTI) Declines More Than Market: Some Information for Investors

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Universal Technical Institute (UTI - Free Report) closed at $14.23 in the latest trading session, marking a -0.28% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.

Heading into today, shares of the school for auto, motorcycle and marine technicians had lost 4.04% over the past month, outpacing the Consumer Discretionary sector's loss of 5.12% and lagging the S&P 500's loss of 1.66% in that time.

Market participants will be closely following the financial results of Universal Technical Institute in its upcoming release. On that day, Universal Technical Institute is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 275%. Meanwhile, our latest consensus estimate is calling for revenue of $177.01 million, up 8.05% from the prior-year quarter.

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.

Investors might also notice recent changes to analyst estimates for Universal Technical Institute. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Universal Technical Institute is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Universal Technical Institute has a Forward P/E ratio of 20.29 right now. For comparison, its industry has an average Forward P/E of 17.35, which means Universal Technical Institute is trading at a premium to the group.

Investors should also note that UTI has a PEG ratio of 1.35 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UTI's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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