Avid Technology (AVID - Free Report) closed the most recent trading day at $8.50, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the audio and video technology company had gained 4.24% over the past month, lagging the Computer and Technology sector's gain of 5.51% and outpacing the S&P 500's gain of 3.24% in that time.
AVID will be looking to display strength as it nears its next earnings release. On that day, AVID is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 10.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $113.51 million, up 0.74% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AVID. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVID currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AVID is currently trading at a Forward P/E ratio of 10.7. This valuation marks a discount compared to its industry's average Forward P/E of 32.83.
Investors should also note that AVID has a PEG ratio of 1.07 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AVID's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.