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CenturyLink (CTL) Outpaces Stock Market Gains: What You Should Know

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CenturyLink (CTL - Free Report) closed at $19.17 in the latest trading session, marking a +1.11% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Coming into today, shares of the communications company had lost 9.89% in the past month. In that same time, the Computer and Technology sector lost 2.32%, while the S&P 500 lost 0.57%.

Wall Street will be looking for positivity from CTL as it approaches its next earnings report date. This is expected to be February 13, 2019. In that report, analysts expect CTL to post earnings of $0.36 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.80 billion, up 8.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.13 per share and revenue of $23.46 billion. These totals would mark changes of -23.13% and +32.85%, respectively, from last year.

Any recent changes to analyst estimates for CTL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 6.5% higher. CTL is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that CTL has a Forward P/E ratio of 16.72 right now. Its industry sports an average Forward P/E of 33.76, so we one might conclude that CTL is trading at a discount comparatively.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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