DLH Holdings Corp. (DLHC) Gains But Lags Market: What You Should Know
In the latest trading session, DLH Holdings Corp. (DLHC) closed at $18.63, marking a +0.87% move from the previous day. This move lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.
Prior to today's trading, shares of the company had gained 12.48% over the past month. This has outpaced the Business Services sector's gain of 3.91% and the S&P 500's gain of 5.65% in that time.
DLH Holdings Corp. will be looking to display strength as it nears its next earnings release. On that day, DLH Holdings Corp. is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 73.68%. Our most recent consensus estimate is calling for quarterly revenue of $95.2 million, up 54.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $378 million, which would represent changes of +65.43% and +53.6%, respectively, from the prior year.
Any recent changes to analyst estimates for DLH Holdings Corp. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 remained stagnant. DLH Holdings Corp. is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note DLH Holdings Corp.'s current valuation metrics, including its Forward P/E ratio of 13.78. This represents a premium compared to its industry's average Forward P/E of 11.75.
The Staffing Firms industry is part of the Business Services sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
To follow DLHC in the coming trading sessions, be sure to utilize Zacks.com.
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