Comtech Telecommunications (CMTL) Dips More Than Broader Markets: What You Should Know
Comtech Telecommunications (CMTL) closed at $25.21 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Heading into today, shares of the communications company had lost 8.56% over the past month, lagging the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 3.57% in that time.
CMTL will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of -$0.05, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $127.40 million, up 4.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $606.93 million. These totals would mark changes of +28% and +6.37%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CMTL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. CMTL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CMTL has a Forward P/E ratio of 26.5 right now. Its industry sports an average Forward P/E of 20, so we one might conclude that CMTL is trading at a premium comparatively.
Meanwhile, CMTL's PEG ratio is currently 5.3. 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. CMTL's industry had an average PEG ratio of 2.11 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 11, putting it in the top 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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