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Scholastic (SCHL) Dips More Than Broader Markets: What You Should Know

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Scholastic (SCHL - Free Report) closed the most recent trading day at $38.02, moving -0.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Coming into today, shares of the publishing, education and media company had gained 6.58% in the past month. In that same time, the Consumer Staples sector lost 0.42%, while the S&P 500 gained 7.08%.

Investors will be hoping for strength from SCHL as it approaches its next earnings release. In that report, analysts expect SCHL to post earnings of $1.77 per share. This would mark a year-over-year decline of 15.31%. Our most recent consensus estimate is calling for quarterly revenue of $591.20 million, down 2.23% from the year-ago period.

SCHL's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $1.69 billion. These results would represent year-over-year changes of +2.78% and +2.22%, respectively.

Investors might also notice recent changes to analyst estimates for SCHL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. SCHL currently has a Zacks Rank of #4 (Sell).

Investors should also note SCHL's current valuation metrics, including its Forward P/E ratio of 34.58. Its industry sports an average Forward P/E of 22.5, so we one might conclude that SCHL is trading at a premium comparatively.

The Publishing - Books industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.

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