CECO Environmental (CECO) Stock Sinks As Market Gains: What You Should Know
CECO Environmental (CECO) closed at $14.17 in the latest trading session, marking a -0.98% move from the prior day. This move lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 5.16%.
Prior to today's trading, shares of the maker of air pollution controls and industrial ventilation systems had lost 8.45% over the past month. This has lagged the Industrial Products sector's loss of 4.45% and the S&P 500's gain of 0.27% 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 $0.10, down 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.67 million, up 17.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.75 per share and revenue of $479.85 million. These totals would mark changes of +1.35% and +13.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CECO Environmental. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 20.21% lower within the past month. CECO Environmental is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note CECO Environmental's current valuation metrics, including its Forward P/E ratio of 19.08. This valuation marks a discount compared to its industry's average Forward P/E of 20.07.
It is also worth noting that CECO currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Pollution Control stocks are, on average, holding a PEG ratio of 2.01 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 36, putting it in the top 15% 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.
To follow CECO in the coming trading sessions, be sure to utilize Zacks.com.
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CECO Environmental Corp. (CECO) : Free Stock Analysis Report
