Comtech Telecommunications (CMTL - Free Report) closed the most recent trading day at $26.47, moving +1.26% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.72%.
Prior to today's trading, shares of the communications company had lost 20.86% over the past month. This has lagged the Computer and Technology sector's loss of 5.24% and the S&P 500's loss of 2.09% in that time.
Investors will be hoping for strength from CMTL as it approaches 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. Our most recent consensus estimate is calling for quarterly revenue of $127.40 million, up 4.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $606.93 million. These totals would mark changes of +28% and +6.37%, respectively, from last year.
Any recent changes to analyst estimates for CMTL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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, the Zacks Consensus EPS estimate remained stagnant. CMTL is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, CMTL currently has a Forward P/E ratio of 27.14. Its industry sports an average Forward P/E of 20.64, so we one might conclude that CMTL is trading at a premium comparatively.
We can also see that CMTL currently has a PEG ratio of 5.43. 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 Wireless Equipment was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 4% 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.