Comtech Telecommunications (CMTL - Free Report) closed the most recent trading day at $27.02, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 1.1% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 1.32%.
Coming into today, shares of the communications company had lost 5.42% in the past month. In that same time, the Computer and Technology sector lost 5.47%, while the S&P 500 lost 5.05%.
CMTL will be looking to display strength as it nears its next earnings release. In that report, analysts expect CMTL to post earnings of $0.10 per share. This would mark a year-over-year decline of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $164.80 million, down 1.58% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CMTL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CMTL currently has a Zacks Rank of #3 (Hold).
Investors should also note CMTL's current valuation metrics, including its Forward P/E ratio of 20.86. This represents a discount 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 4.17. 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. The Wireless Equipment industry currently had an average PEG ratio of 2.79 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 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.