In the latest market close, Nice (NICE – Free Report) reached $165.72, with a -0.37% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the software company had lost 9.55% over the past month, lagging the Computer and Technology sector’s loss of 0.39% and the S&P 500’s loss of 2.7% in that time.
The upcoming earnings release of Nice will be of great interest to investors. The company is forecasted to report an EPS of $2.96, showcasing a 25.42% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $713.01 million, up 14.41% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nice. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Nice boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Nice currently has a Forward P/E ratio of 13.48. Its industry sports an average Forward P/E of 28.07, so one might conclude that Nice is trading at a discount comparatively.
It is also worth noting that NICE currently has a PEG ratio of 0.93. 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. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 2.1.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 10% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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