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Napco (NSSC) Gains But Lags Market: What You Should Know

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In the latest trading session, Napco (NSSC - Free Report) closed at $25.52, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.75%.

Coming into today, shares of the security products and software company had lost 24.47% in the past month. In that same time, the Industrial Products sector gained 7.56%, while the S&P 500 gained 3.44%.

Investors will be hoping for strength from NSSC as it approaches its next earnings release. On that day, NSSC is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 212.5%. Our most recent consensus estimate is calling for quarterly revenue of $25.88 million, up 10.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.86 per share and revenue of $113.50 million. These totals would mark changes of +30.3% and +10.27%, respectively, from last year.

Any recent changes to analyst estimates for NSSC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NSSC is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, NSSC is currently trading at a Forward P/E ratio of 29.83. This valuation marks a premium compared to its industry's average Forward P/E of 20.95.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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