Exfo closed at $3.80 in the latest trading session, marking a +0.8% move from the prior day. This change outpaced the S&P 500's 0.12% loss on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.32%.
Heading into today, shares of the telecommunications testing company had lost 13.53% over the past month, lagging the Computer and Technology sector's gain of 2.43% and the S&P 500's gain of 3.31% in that time.
Investors will be hoping for strength from EXFO as it approaches its next earnings release, which is expected to be July 10, 2019. On that day, EXFO is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $74.40 million, up 3.02% from the prior-year quarter.
EXFO's full-year Zacks Consensus Estimates are calling for earnings of $0.21 per share and revenue of $293.80 million. These results would represent year-over-year changes of +133.33% and +9%, respectively.
It is also important to note the recent changes to analyst estimates for EXFO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. EXFO is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, EXFO currently has a Forward P/E ratio of 18.39. For comparison, its industry has an average Forward P/E of 26.32, which means EXFO is trading at a discount to the group.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.