Meritor (MTOR - Free Report) closed at $17.87 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.13%.
Heading into today, shares of the supplier of parts for commercial vehicles and heavy equipment had gained 6.13% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.42% and outpacing the S&P 500's gain of 3.59% in that time.
Wall Street will be looking for positivity from MTOR as it approaches its next earnings report date. The company is expected to report EPS of $0.68, down 17.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 3.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.72 per share and revenue of $4.41 billion. These totals would mark changes of +22.77% and +5.47%, respectively, from last year.
Any recent changes to analyst estimates for MTOR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 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. MTOR is currently a Zacks Rank #2 (Buy).
Digging into valuation, MTOR currently has a Forward P/E ratio of 4.84. Its industry sports an average Forward P/E of 9.58, so we one might conclude that MTOR is trading at a discount comparatively.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.