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CenturyLink (CTL) Gains But Lags Market: What You Should Know

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CenturyLink (CTL - Free Report) closed at $12.39 in the latest trading session, marking a +0.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the communications company had gained 7.01% over the past month, outpacing the Computer and Technology sector's gain of 5.1% and the S&P 500's gain of 2.57% in that time.

Investors will be hoping for strength from CTL as it approaches its next earnings release, which is expected to be May 8, 2019. The company is expected to report EPS of $0.29, up 16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, down 3.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $22.77 billion, which would represent changes of +4.2% and -3.43%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CTL. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. CTL currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, CTL is holding a Forward P/E ratio of 9.94. For comparison, its industry has an average Forward P/E of 31.34, which means CTL is trading at a discount to the group.

Meanwhile, CTL's PEG ratio is currently 0.78. 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 Wireless National was holding an average PEG ratio of 2.89 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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