Verso Corporation (VRS - Free Report) closed the most recent trading day at $25.21, moving -0.1% from the previous trading session. This change lagged the S&P 500's 1.32% gain on the day. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.74%.
Prior to today's trading, shares of the company had gained 14.58% over the past month. This has outpaced the Basic Materials sector's gain of 7.33% and the S&P 500's gain of 4.16% in that time.
Wall Street will be looking for positivity from VRS as it approaches its next earnings report date. This is expected to be March 14, 2019. The company is expected to report EPS of $1.71, up 64.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $712.83 million, up 11.55% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for VRS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. VRS currently has a Zacks Rank of #3 (Hold).
In terms of valuation, VRS is currently trading at a Forward P/E ratio of 4.37. This valuation marks a discount compared to its industry's average Forward P/E of 9.21.
The Paper and Related Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% 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.