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Itron (ITRI) Surpasses Market Returns: Some Facts Worth Knowing

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Itron (ITRI - Free Report) closed the most recent trading day at $125.44, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.28%.

Coming into today, shares of the energy and water meter company had gained 2.04% in the past month. In that same time, the Computer and Technology sector gained 10.49%, while the S&P 500 gained 4.83%.

Analysts and investors alike will be keeping a close eye on the performance of Itron in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.48, indicating a 19.57% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $576.45 million, down 6.34% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.07 per share and a revenue of $2.37 billion, demonstrating changes of +8.01% and -2.76%, respectively, from the preceding year.

Any recent changes to analyst estimates for Itron should also be noted by investors. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained unchanged. Right now, Itron possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Itron currently has a Forward P/E ratio of 20.35. This expresses a discount compared to the average Forward P/E of 23.17 of its industry.

Investors should also note that ITRI has a PEG ratio of 0.68 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Electronics - Testing Equipment industry held an average PEG ratio of 2.68.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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