Avantor, Inc. (AVTR) Gains But Lags Market: What You Should Know
Avantor, Inc. (AVTR) closed the most recent trading day at $41.10, moving +0.37% from the previous trading session. This change lagged the S&P 500's 1.02% gain on the day. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the company had gained 4.7% over the past month. This has outpaced the Medical sector's gain of 0.37% and the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Avantor, Inc. as it approaches its next earnings release. On that day, Avantor, Inc. is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 13.79%. Meanwhile, our latest consensus estimate is calling for revenue of $1.9 billion, up 6.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.38 per share and revenue of $7.38 billion, which would represent changes of +55.06% and +15.45%, respectively, from the prior year.
Any recent changes to analyst estimates for Avantor, Inc. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Avantor, Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Avantor, Inc. is currently trading at a Forward P/E ratio of 29.62. For comparison, its industry has an average Forward P/E of 28.81, which means Avantor, Inc. is trading at a premium to the group.
Investors should also note that AVTR has a PEG ratio of 1.24 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical Services stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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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