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Shaw Communications (SJR) Gains But Lags Market: What You Should Know

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Shaw Communications (SJR - Free Report) closed the most recent trading day at $20.09, moving +0.55% from the previous trading session. This change lagged the S&P 500's 0.96% gain on the day. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.58%.

Coming into today, shares of the communications and media company had lost 4.08% in the past month. In that same time, the Consumer Discretionary sector gained 5.48%, while the S&P 500 gained 1.85%.

Investors will be hoping for strength from SJR as it approaches its next earnings release. On that day, SJR is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 18.75%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 1.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1 per share and revenue of $4.07 billion, which would represent changes of -15.25% and -1%, respectively, from the prior year.

Any recent changes to analyst estimates for SJR should also be noted by investors. Recent revisions tend to reflect the latest 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.49% lower. SJR is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that SJR has a Forward P/E ratio of 20.06 right now. For comparison, its industry has an average Forward P/E of 22.86, which means SJR is trading at a discount to the group.

We can also see that SJR currently has a PEG ratio of 4.01. 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. SJR's industry had an average PEG ratio of 2.05 as of yesterday's close.

The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.

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