Plantronics (PLT - Free Report) closed at $12.79 in the latest trading session, marking a -1.69% move from the prior day. This move lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 1.42%.
Investors will be hoping for strength from PLT as it approaches its next earnings release, which is expected to be May 21, 2020. The company is expected to report EPS of $0.07, down 95.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $360.98 million, down 22.95% from the year-ago period.
It is also important to note the recent changes to analyst estimates for PLT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. PLT is currently a Zacks Rank #2 (Buy).
Investors should also note PLT's current valuation metrics, including its Forward P/E ratio of 7.46. Its industry sports an average Forward P/E of 24.58, so we one might conclude that PLT is trading at a discount comparatively.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.