Comtech Telecommunications (CMTL - Free Report) closed at $31.92 in the latest trading session, marking a +0.6% move from the prior day. This move lagged the S&P 500's daily gain of 1.42%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 2.29%.
Coming into today, shares of the communications company had lost 5.99% in the past month. In that same time, the Computer and Technology sector lost 8.09%, while the S&P 500 lost 5.36%.
CMTL will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of -$0.05, up 28.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $127.40 million, up 4.8% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.96 per share and revenue of $606.93 million, which would represent changes of +28% and +6.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CMTL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 27.31% higher. CMTL is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note CMTL's current valuation metrics, including its Forward P/E ratio of 32.94. This represents a premium compared to its industry's average Forward P/E of 19.8.
We can also see that CMTL currently has a PEG ratio of 6.59. 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. The Wireless Equipment was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CMTL in the coming trading sessions, be sure to utilize Zacks.com.