In the latest trading session, Alarm.com Holdings (ALRM - Free Report) closed at $65.09, marking a +1.32% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.91%.
Heading into today, shares of the security service company had gained 5.23% over the past month, lagging the Industrial Products sector's gain of 6.31% and outpacing the S&P 500's gain of 4.16% in that time.
ALRM will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. In that report, analysts expect ALRM to post earnings of $0.24 per share. This would mark a year-over-year decline of 7.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $99.63 million, up 12.21% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ALRM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ALRM is currently a Zacks Rank #1 (Strong Buy).
Investors should also note ALRM's current valuation metrics, including its Forward P/E ratio of 46.51. This valuation marks a premium compared to its industry's average Forward P/E of 18.1.
It is also worth noting that ALRM currently has a PEG ratio of 2.73. 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. Security and Safety Services stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.