VMware (VMW - Free Report) closed at $169.62 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.51%.
Coming into today, shares of the cloud computing company had gained 12.94% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 4.7%.
VMW will be looking to display strength as it nears its next earnings release, which is expected to be November 26, 2019. The company is expected to report EPS of $1.42, down 8.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.40 billion, up 9.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $10.03 billion, which would represent changes of +3.32% and +11.74%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VMW. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 has moved 0.06% higher within the past month. VMW is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that VMW has a Forward P/E ratio of 26.42 right now. Its industry sports an average Forward P/E of 29.9, so we one might conclude that VMW is trading at a discount comparatively.
We can also see that VMW currently has a PEG ratio of 1.91. 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 Computer - Software was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.