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Nice (NICE) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, Nice (NICE - Free Report) was down 5.19% at $163.01. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.

Shares of the software company witnessed a loss of 3.58% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.2%, and the S&P 500's gain of 4.37%.

The upcoming earnings release of Nice will be of great interest to investors. The company is forecasted to report an EPS of $2.99, showcasing a 13.26% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $713.93 million, up 7.46% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.37 per share and a revenue of $2.93 billion, signifying shifts of +11.24% and +7%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Nice. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. As of now, Nice holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Nice is currently exchanging hands at a Forward P/E ratio of 13.9. For comparison, its industry has an average Forward P/E of 29.03, which means Nice is trading at a discount to the group.

One should further note that NICE currently holds a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NICE's industry had an average PEG ratio of 2.24 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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