Tech Data (TECD - Free Report) closed the most recent trading day at $129.80, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.11%.
Prior to today's trading, shares of the information technology products distributor had gained 4.54% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.18% and the S&P 500's gain of 4.32% in that time.
TECD will be looking to display strength as it nears its next earnings release. On that day, TECD is projected to report earnings of $3.01 per share, which would represent a year-over-year decline of 0.33%. Our most recent consensus estimate is calling for quarterly revenue of $9.34 billion, up 0.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.50 per share and revenue of $37.33 billion, which would represent changes of +9.84% and +0.23%, respectively, from the prior year.
Any recent changes to analyst estimates for TECD should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. TECD is currently a Zacks Rank #4 (Sell).
Looking at its valuation, TECD is holding a Forward P/E ratio of 10.44. Its industry sports an average Forward P/E of 13.56, so we one might conclude that TECD is trading at a discount comparatively.
Also, we should mention that TECD has a PEG ratio of 2.68. 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 Retail - Computer Hardware was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Retail - Computer Hardware industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.