In the latest trading session, Altair Engineering Inc. (ALTR) closed at $41.34, marking a -0.65% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.79%.
Prior to today's trading, shares of the company had lost 0.02% over the past month. This has lagged the Construction sector's gain of 0.87% and the S&P 500's gain of 1.52% in that time.
Wall Street will be looking for positivity from ALTR as it approaches its next earnings report date. This is expected to be August 8, 2019. In that report, analysts expect ALTR to post earnings of $0.08 per share. This would mark year-over-year growth of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $107.95 million, up 12.95% from the prior-year quarter.
ALTR's full-year Zacks Consensus Estimates are calling for earnings of $0.63 per share and revenue of $475.27 million. These results would represent year-over-year changes of +53.66% and +23.71%, respectively.
It is also important to note the recent changes to analyst estimates for ALTR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. ALTR is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ALTR is holding a Forward P/E ratio of 66.05. For comparison, its industry has an average Forward P/E of 15.21, which means ALTR is trading at a premium to the group.
The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% 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.
To follow ALTR in the coming trading sessions, be sure to utilize Zacks.com.
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