In the latest trading session, Comtech Telecommunications (CMTL - Free Report) closed at $28.30, marking a +0.64% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.48%, and the tech-heavy Nasdaq gained 1.95%.
Coming into today, shares of the communications company had lost 0.28% in the past month. In that same time, the Computer and Technology sector lost 4.12%, while the S&P 500 lost 4.19%.
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. These revisions help to show the ever-changing nature of near-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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 15.29% higher. CMTL is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CMTL's current valuation metrics, including its Forward P/E ratio of 21.97. Its industry sports an average Forward P/E of 22.29, so we one might conclude that CMTL is trading at a discount comparatively.
Meanwhile, CMTL's PEG ratio is currently 4.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.96 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.