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CenturyLink (CTL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
In the latest trading session, Heico (HEI) closed at $138.11, marking a +0.69% move from the previous day.

In the latest trading session, CenturyLink (CTL) closed at $12.09, marking a -1.31% move from the previous day. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the communications company had gained 2.85% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 3.16%.

CTL will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2019. In that report, analysts expect CTL to post earnings of $0.28 per share. This would mark year-over-year growth of 12%. Meanwhile, our latest consensus estimate is calling for revenue of $5.73 billion, down 3.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $22.73 billion, which would represent changes of +4.2% and -3.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CTL. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% lower. CTL currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CTL is currently trading at a Forward P/E ratio of 9.89. This valuation marks a discount compared to its industry's average Forward P/E of 35.86.

We can also see that CTL currently has a PEG ratio of 0.78. 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. Wireless National stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 30% 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.

To follow CTL in the coming trading sessions, be sure to utilize Zacks.com.


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