ChannelAdvisor (ECOM) closed at $20.37 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 1.49%.
Coming into today, shares of the provider of cloud-based e-commerce services had gained 33.16% in the past month. In that same time, the Computer and Technology sector gained 5.59%, while the S&P 500 gained 5.03%.
Investors will be hoping for strength from ECOM as it approaches its next earnings release, which is expected to be August 6, 2020. The company is expected to report EPS of $0.20, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.11 million, up 6.84% from the year-ago period.
ECOM's full-year Zacks Consensus Estimates are calling for earnings of $0.76 per share and revenue of $135.75 million. These results would represent year-over-year changes of +90% and +4.46%, respectively.
It is also important to note the recent changes to analyst estimates for ECOM. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ECOM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ECOM currently has a Forward P/E ratio of 26.83. This valuation marks a discount compared to its industry's average Forward P/E of 30.06.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.
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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