In the latest trading session, Comtech Telecommunications (CMTL) closed at $27.64, marking a +0.18% move from the previous day. This change outpaced the S&P 500's 0.01% loss on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.19%.
Prior to today's trading, shares of the communications company had lost 3.67% over the past month. This has lagged the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 3.61% in that time.
Wall Street will be looking for positivity from CMTL as it approaches its next earnings report date. On that day, CMTL is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 75%. Our most recent consensus estimate is calling for quarterly revenue of $164.80 million, down 1.58% from the year-ago period.
Any recent changes to analyst estimates for CMTL should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CMTL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CMTL has a Forward P/E ratio of 21.56 right now. Its industry sports an average Forward P/E of 22.38, so we one might conclude that CMTL is trading at a discount comparatively.
Meanwhile, CMTL's PEG ratio is currently 4.31. 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 Wireless Equipment was holding an average PEG ratio of 2.55 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 95, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Comtech Telecommunications Corp. (CMTL): Free Stock Analysis Report
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