CECO Environmental (CECO) Gains But Lags Market: What You Should Know
CECO Environmental (CECO) closed at $14.38 in the latest trading session, marking a +1.27% move from the prior day. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 7.94%.
Heading into today, shares of the maker of air pollution controls and industrial ventilation systems had gained 19.73% over the past month, outpacing the Industrial Products sector's gain of 7.49% and the S&P 500's gain of 7.41% in that time.
CECO Environmental will be looking to display strength as it nears its next earnings release. On that day, CECO Environmental is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $103.95 million, up 11.07% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CECO Environmental. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.17% higher. CECO Environmental is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that CECO Environmental has a Forward P/E ratio of 15.11 right now. This represents a discount compared to its industry's average Forward P/E of 26.85.
We can also see that CECO 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. CECO's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Pollution Control industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CECO Environmental Corp. (CECO) : Free Stock Analysis Report
