Back to top

Image: Bigstock

Napco (NSSC) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Napco (NSSC - Free Report) closed at $32.77 in the latest trading session, marking a +1.46% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 1.32%.

Heading into today, shares of the security products and software company had gained 20.25% over the past month, outpacing the Industrial Products sector's loss of 9.08% and the S&P 500's loss of 5.05% in that time.

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.

Investors should also note any recent changes to analyst estimates for NSSC. 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.

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 remained stagnant. NSSC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, NSSC currently has a Forward P/E ratio of 37.78. This represents a premium compared to its industry's average Forward P/E of 19.02.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 18% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NAPCO Security Technologies, Inc. (NSSC) - free report >>

Published in