Royal Philips (PHG) closed at $51.61 in the latest trading session, marking a -1% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.5%.
Coming into today, shares of the medical imaging equipment maker had lost 0.4% in the past month. In that same time, the Computer and Technology sector gained 4.61%, while the S&P 500 gained 5.42%.
Wall Street will be looking for positivity from PHG as it approaches its next earnings report date.
PHG's full-year Zacks Consensus Estimates are calling for earnings of $2.33 per share and revenue of $22.84 billion. These results would represent year-over-year changes of +3.1% and +4.82%, respectively.
Any recent changes to analyst estimates for PHG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PHG is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note PHG's current valuation metrics, including its Forward P/E ratio of 22.37. Its industry sports an average Forward P/E of 22.27, so we one might conclude that PHG is trading at a premium comparatively.
We can also see that PHG currently has a PEG ratio of 1.85. 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. PHG's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.
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Koninklijke Philips N.V. (NYSE:PHG): Free Stock Analysis Report
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