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Agilysys (AGYS) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Agilysys (AGYS) closed at $23.89, marking a +0.89% move from the previous day. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 1.7%, and the Nasdaq, a tech-heavy index, added 1.13%.

Wall Street will be looking for positivity from AGYS as it approaches its next earnings report date. The company is expected to report EPS of -$0.20, down 185.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $26.20 million, down 31.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.49 per share and revenue of $139.09 million, which would represent changes of +66.67% and -13.48%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AGYS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 moved 8.89% lower. AGYS is currently sporting a Zacks Rank of #4 (Sell).

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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