- 20 октября 2018, 00:45
- Zacks Investment Research
Comtech Telecommunications (CMTL) closed the most recent trading day at $31.69, moving -1.25% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.48%.
Coming into today, shares of the communications company had lost 2.25% in the past month. In that same time, the Computer and Technology sector lost 6.5%, while the S&P 500 lost 4.53%.
Investors will be hoping for strength from CMTL as it approaches its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of -$0.05, up 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $127.40 million, up 4.8% from the year-ago period.
CMTL's full-year Zacks Consensus Estimates are calling for earnings of $0.96 per share and revenue of $606.93 million. These results would represent year-over-year changes of +28% and +6.37%, respectively.
Investors should also note any recent changes to analyst estimates for CMTL. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 27.31% higher. CMTL is currently a Zacks Rank #1 (Strong Buy).
Investors should also note CMTL's current valuation metrics, including its Forward P/E ratio of 33.31. Its industry sports an average Forward P/E of 21.62, so we one might conclude that CMTL is trading at a premium comparatively.
Meanwhile, CMTL's PEG ratio is currently 6.66. 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. The Wireless Equipment was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 29, putting it in the top 11% 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.
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