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Napco (NSSC) Gains But Lags Market: What You Should Know

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Napco (NSSC - Free Report) closed at $31.74 in the latest trading session, marking a +1.47% move from the prior day. This move lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.48%, while the tech-heavy Nasdaq added 1.95%.

Coming into today, shares of the security products and software company had gained 17.37% in the past month. In that same time, the Industrial Products sector lost 6.63%, while the S&P 500 lost 4.19%.

Investors will be hoping for strength from NSSC as it approaches its next earnings release. The company is expected to report EPS of $0.25, up 25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.39 million, up 7.82% from the year-ago period.

Any recent changes to analyst estimates for NSSC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NSSC currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that NSSC has a Forward P/E ratio of 36.58 right now. For comparison, its industry has an average Forward P/E of 19.92, which means NSSC is trading at a premium to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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