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

Zacks Equity Research

CenturyLink (CTL) closed at $12.04 in the latest trading session, marking a -1.07% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.

Coming into today, shares of the communications company had lost 4.92% in the past month. In that same time, the Computer and Technology sector gained 0.51%, while the S&P 500 lost 0.14%.

Wall Street will be looking for positivity from CTL as it approaches its next earnings report date. This is expected to be November 6, 2019. On that day, CTL is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 6.67%. Our most recent consensus estimate is calling for quarterly revenue of $5.55 billion, down 4.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $22.30 billion. These totals would mark changes of +13.45% and -5.43%, 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% 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 9.01. This represents a discount compared to its industry's average Forward P/E of 13.6.

It is also worth noting that CTL currently has a PEG ratio of 0.87. 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 2.7 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 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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