Comtech Telecommunications (CMTL - Free Report) closed the most recent trading day at $25.49, moving +0.79% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.
Heading into today, shares of the communications company had lost 16.65% over the past month, lagging the Computer and Technology sector's loss of 7.28% and the S&P 500's loss of 4.37% in that time.
CMTL will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. In that report, analysts expect CMTL to post earnings of -$0.05 per share. This would mark year-over-year growth of 28.57%. 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. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that CMTL has a Forward P/E ratio of 26.25 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.91.
It is also worth noting that CMTL currently has a PEG ratio of 5.25. 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 2.07 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 8, putting it in the top 3% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.