U.S. Markets closed

Carbonite (CARB) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Carbonite (CARB) closed the most recent trading day at $24.12, moving -0.64% from the previous trading session. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the cloud computing company had lost 3.92% over the past month. This has lagged the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 4.87% in that time.

Wall Street will be looking for positivity from CARB as it approaches its next earnings report date. This is expected to be May 2, 2019. The company is expected to report EPS of $0.37, up 37.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $77.47 million, up 20.99% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.72 per share and revenue of $494.08 million, which would represent changes of +3.61% and +65.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CARB. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 1.65% higher. CARB currently has a Zacks Rank of #3 (Hold).

Investors should also note CARB's current valuation metrics, including its Forward P/E ratio of 14.09. For comparison, its industry has an average Forward P/E of 19.78, which means CARB is trading at a discount to the group.

We can also see that CARB currently has a PEG ratio of 0.7. 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. The Computer - Services industry currently had an average PEG ratio of 2.24 as of yesterday's close.

The Computer - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carbonite, Inc. (CARB) : Free Stock Analysis Report
To read this article on Zacks.com click here.