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Napco (NSSC) Dips More Than Broader Markets: What You Should Know

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Napco (NSSC - Free Report) closed the most recent trading day at $26.54, moving -1.37% from the previous trading session. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 1.47%.

Prior to today's trading, shares of the security products and software company had lost 17.88% over the past month. This has lagged the Industrial Products sector's gain of 7.9% and the S&P 500's gain of 5.2% 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 $0.14, up 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.88 million, up 10.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.86 per share and revenue of $113.50 million, which would represent changes of +30.3% and +10.27%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NSSC. 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.

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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NSSC is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, NSSC is currently trading at a Forward P/E ratio of 31.47. This valuation marks a premium compared to its industry's average Forward P/E of 20.9.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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