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Lenovo (LNVGY) Outpaces Stock Market Gains: What You Should Know

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Lenovo (LNVGY - Free Report) closed at $15.17 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.

Prior to today's trading, shares of the PC and phone maker had lost 1.96% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.22% and the S&P 500's loss of 3.57% in that time.

LNVGY will be looking to display strength as it nears its next earnings release. In that report, analysts expect LNVGY to post earnings of $0.37 per share. This would mark year-over-year growth of 184.62%. Our most recent consensus estimate is calling for quarterly revenue of $12.43 billion, up 4.3% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.54 per share and revenue of $54.11 billion. These totals would mark changes of +55.56% and +6.03%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for LNVGY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. LNVGY is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that LNVGY has a Forward P/E ratio of 9.75 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.75.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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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