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OneSpan (OSPN) Laps the Stock Market: Here's Why

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OneSpan (OSPN - Free Report) closed the most recent trading day at $15.53, moving +1.5% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%.

Prior to today's trading, shares of the internet security company had lost 3.2% lagged the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%.

The upcoming earnings release of OneSpan will be of great interest to investors. The company is forecasted to report an EPS of $0.27, showcasing a 12.9% downward movement from the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.45 per share and revenue of $0 million, indicating changes of +9.85% and 0%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for OneSpan. 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 business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. OneSpan is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, OneSpan is currently being traded at a Forward P/E ratio of 10.55. Its industry sports an average Forward P/E of 27.81, so one might conclude that OneSpan is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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