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Kemet (KEM) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Kemet (KEM - Free Report) closed at $17.21, marking a +0.7% move from the previous day. This move outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.53%.

Prior to today's trading, shares of the electronic capacitor maker had lost 3.83% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.25% and lagged the S&P 500's loss of 3.77% in that time.

Wall Street will be looking for positivity from KEM as it approaches its next earnings report date. In that report, analysts expect KEM to post earnings of $0.75 per share. This would mark year-over-year growth of 36.36%. Meanwhile, our latest consensus estimate is calling for revenue of $343.47 million, up 4.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $1.39 billion, which would represent changes of -12.15% and +0.78%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KEM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 20.36% lower. KEM currently has a Zacks Rank of #3 (Hold).

In terms of valuation, KEM is currently trading at a Forward P/E ratio of 5.49. This valuation marks a discount compared to its industry's average Forward P/E of 16.95.

The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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