Avid Technology (AVID - Free Report) closed at $8.33 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's 0.46% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.59%.
Heading into today, shares of the audio and video technology company had gained 91.61% over the past month, outpacing the Computer and Technology sector's gain of 5.33% and the S&P 500's gain of 3.24% in that time.
AVID will be looking to display strength as it nears its next earnings release. In that report, analysts expect AVID to post earnings of $0.07 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $101.39 million, up 3.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.67 per share and revenue of $425.35 million. These totals would mark changes of +148.15% and +2.92%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AVID. These revisions help to show the ever-changing nature of 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.
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 has moved 4% higher within the past month. AVID is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AVID currently has a Forward P/E ratio of 12.61. Its industry sports an average Forward P/E of 30.28, so we one might conclude that AVID is trading at a discount comparatively.
Meanwhile, AVID's PEG ratio is currently 1.26. 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 2.16 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 22, putting it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.