FireEye (FEYE - Free Report) closed at $16.79 in the latest trading session, marking a +1.08% move from the prior day. This move outpaced the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.8%.
Prior to today's trading, shares of the computer security software company had lost 11.93% over the past month. This has lagged the Computer and Technology sector's loss of 1.5% and the S&P 500's loss of 2.09% in that time.
Wall Street will be looking for positivity from FEYE as it approaches its next earnings report date. This is expected to be February 6, 2019. In that report, analysts expect FEYE to post earnings of $0.05 per share. This would mark year-over-year growth of 400%. Meanwhile, our latest consensus estimate is calling for revenue of $216.54 million, up 7.05% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for FEYE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. FEYE is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that FEYE has a Forward P/E ratio of 86.81 right now. For comparison, its industry has an average Forward P/E of 41.42, which means FEYE is trading at a premium to the group.
Investors should also note that FEYE has a PEG ratio of 5.43 right now. 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 Security was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.