CECO Environmental (CECE) Flat As Market Sinks: What You Should Know
CECO Environmental (CECE) closed the most recent trading day at $9.54, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the maker of air pollution controls and industrial ventilation systems had lost 5.26% over the past month. This has was narrower than the Industrial Products sector's loss of 6.9% and the S&P 500's loss of 7.59% in that time.
CECO Environmental will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.14, up 1300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $97.07 million, up 21.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.63 per share and revenue of $394.26 million. These totals would mark changes of +125% and +21.63%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CECO Environmental. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CECO Environmental is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, CECO Environmental is currently trading at a Forward P/E ratio of 15.14. This represents a discount compared to its industry's average Forward P/E of 23.85.
It is also worth noting that CECE currently has a PEG ratio of 1.01. 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. Pollution Control stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Pollution Control industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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