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Can Descartes Systems (DSGX) Run Higher on Rising Earnings Estimates?
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Descartes Systems (DSGX - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The upward trend in estimate revisions for this logistics provider reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Descartes Systems, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.55 per share, which is a change of +27.9% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for Descartes Systems compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 6.86%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $1.99 per share, representing a year-over-year change of +21.3%.
The revisions trend for the current year also appears quite promising for Descartes Systems, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 10.28%.
Favorable Zacks Rank
The promising estimate revisions have helped Descartes Systems earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Descartes Systems have attracted decent investments and pushed the stock 10.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Can Descartes Systems (DSGX) Run Higher on Rising Earnings Estimates?
Descartes Systems (DSGX - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The upward trend in estimate revisions for this logistics provider reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Descartes Systems, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.55 per share, which is a change of +27.9% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for Descartes Systems compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 6.86%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $1.99 per share, representing a year-over-year change of +21.3%.
The revisions trend for the current year also appears quite promising for Descartes Systems, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 10.28%.
Favorable Zacks Rank
The promising estimate revisions have helped Descartes Systems earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Descartes Systems have attracted decent investments and pushed the stock 10.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.