VMware (VMW - Free Report) closed the most recent trading day at $167.98, moving +0.57% from the previous trading session. This change outpaced the S&P 500's 0.27% loss on the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq added 0.09%.
Prior to today's trading, shares of the cloud computing company had gained 15.83% over the past month. This has outpaced the Computer and Technology sector's gain of 7.6% and the S&P 500's gain of 6.26% in that time.
VMW will be looking to display strength as it nears its next earnings release. In that report, analysts expect VMW to post earnings of $1.87 per share. This would mark year-over-year growth of 11.31%. Our most recent consensus estimate is calling for quarterly revenue of $2.50 billion, up 8.31% from the year-ago period.
Any recent changes to analyst estimates for VMW should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. VMW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, VMW currently has a Forward P/E ratio of 25.22. Its industry sports an average Forward P/E of 28.09, so we one might conclude that VMW is trading at a discount comparatively.
Also, we should mention that VMW has a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.