CECO Environmental (CECO) Gains As Market Dips: What You Should Know
In the latest trading session, CECO Environmental (CECO) closed at $13.85, marking a +0.44% move from the previous day. This move outpaced the S&P 500's daily loss of 1.3%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 5.51%.
Prior to today's trading, shares of the maker of air pollution controls and industrial ventilation systems had gained 18.07% over the past month. This has outpaced the Industrial Products sector's gain of 5.07% and the S&P 500's gain of 6.41% in that time.
Investors will be hoping for strength from CECO Environmental as it approaches its next earnings release. In that report, analysts expect CECO Environmental to post earnings of $0.20 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $103.95 million, up 11.07% from the year-ago period.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 2.17% higher within the past month. CECO Environmental is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note CECO Environmental's current valuation metrics, including its Forward P/E ratio of 14.67. Its industry sports an average Forward P/E of 26.19, so we one might conclude that CECO Environmental is trading at a discount comparatively.
It is also worth noting that CECO currently has a PEG ratio of 0.98. 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 Pollution Control was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Pollution Control industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CECO Environmental Corp. (CECO) : Free Stock Analysis Report
