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CenturyLink (CTL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, CenturyLink (CTL) closed at $13.33, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.67%.

Coming into today, shares of the communications company had lost 10.96% in the past month. In that same time, the Computer and Technology sector gained 2.67%, while the S&P 500 gained 2.44%.

CTL will be looking to display strength as it nears its next earnings release. In that report, analysts expect CTL to post earnings of $0.33 per share. This would mark a year-over-year decline of 10.81%. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, down 3.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $22.37 billion. These totals would mark changes of +10.08% and -5.12%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CTL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.45% lower within the past month. CTL is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CTL is holding a Forward P/E ratio of 10.08. This valuation marks a discount compared to its industry's average Forward P/E of 13.24.

We can also see that CTL currently has a PEG ratio of 1.36. 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. The Wireless National was holding an average PEG ratio of 3.19 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.

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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