Mitek Systems (MITK - Free Report) closed the most recent trading day at $6.06, moving -1.78% from the previous trading session. This change was narrower than the S&P 500's daily loss of 4.34%. Elsewhere, the Dow lost 4.55%, while the tech-heavy Nasdaq lost 3.79%.
Prior to today's trading, shares of the mobile imaging software company had lost 35.93% over the past month. This has lagged the Computer and Technology sector's loss of 27.47% and the S&P 500's loss of 28.78% in that time.
MITK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.11, up 57.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.46 million, up 17.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $100.05 million. These totals would mark changes of +21.43% and +18.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MITK. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MITK is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, MITK is holding a Forward P/E ratio of 12.02. Its industry sports an average Forward P/E of 12.02, so we one might conclude that MITK is trading at a no noticeable deviation comparatively.
It is also worth noting that MITK currently has a PEG ratio of 0.8. 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. MITK's industry had an average PEG ratio of 0.8 as of yesterday's close.
The Computer - Optical Imaging industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.