Comtech Telecommunications (CMTL - Free Report) closed the most recent trading day at $29.54, moving -0.74% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the communications company had gained 4.53% over the past month, outpacing the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 1.52% in that time.
Wall Street will be looking for positivity from CMTL as it approaches its next earnings report date. The company is expected to report EPS of $0.10, down 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $164.70 million, down 1.64% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CMTL. Recent revisions tend to reflect the latest near-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CMTL is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, CMTL currently has a Forward P/E ratio of 34.01. This represents a premium compared to its industry's average Forward P/E of 21.92.
It is also worth noting that CMTL currently has a PEG ratio of 6.8. 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. CMTL's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.