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Nice (NICE) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Nice (NICE - Free Report) was down 4.18% at $129.87. The stock's change was less than the S&P 500's daily loss of 1.17%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 2.04%.

The software company's shares have seen a decrease of 1.79% over the last month, not keeping up with the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.

Market participants will be closely following the financial results of Nice in its upcoming release. The company is expected to report EPS of $3.17, up 10.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $727.92 million, up 5.5% from the year-ago period.

NICE's full-year Zacks Consensus Estimates are calling for earnings of $12.44 per share and revenue of $2.93 billion. These results would represent year-over-year changes of +11.87% and +7%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Nice. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nice presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Nice is currently being traded at a Forward P/E ratio of 10.9. This signifies a discount in comparison to the average Forward P/E of 29.38 for its industry.

We can also see that NICE currently has a PEG ratio of 0.96. 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. The Internet - Software was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.

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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