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Avid Technology (AVID) Dips More Than Broader Markets: What You Should Know

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Avid Technology (AVID - Free Report) closed the most recent trading day at $7.63, moving -1.29% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.

Coming into today, shares of the audio and video technology company had gained 1.71% in the past month. In that same time, the Computer and Technology sector gained 5.87%, while the S&P 500 gained 4.65%.

Wall Street will be looking for positivity from AVID as it approaches its next earnings report date. This is expected to be May 6, 2019. On that day, AVID is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $101.39 million, up 3.53% from the year-ago period.

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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVID is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, AVID is holding a Forward P/E ratio of 11.54. This represents a discount compared to its industry's average Forward P/E of 31.14.

Investors should also note that AVID has a PEG ratio of 1.15 right now. 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. The Computer - Software was holding an average PEG ratio of 2.29 at yesterday's closing price.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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