In the latest trading session, Avid Technology (AVID - Free Report) closed at $8.68, marking a +0.7% move from the previous day. This change outpaced the S&P 500's 0% on the day. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the audio and video technology company had gained 87.39% over the past month. This has outpaced the Computer and Technology sector's gain of 7.39% and the S&P 500's gain of 5.49% in that time.
AVID will be looking to display strength as it nears its next earnings release. On that day, AVID is projected to report earnings of $0.07 per share, which would represent 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.
Investors should also note any recent changes to analyst estimates for AVID. 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. 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 a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that AVID has a Forward P/E ratio of 12.87 right now. For comparison, its industry has an average Forward P/E of 31.05, which means AVID is trading at a discount to the group.
Also, we should mention that AVID has a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVID's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% 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.