Donnelley Financial Solutions (DFIN) Gains As Market Dips: What You Should Know

In the latest trading session, Donnelley Financial Solutions (DFIN) closed at $31.30, marking a +0.35% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.74%.

Heading into today, shares of the financial communications and data services provider had lost 13.14% over the past month, lagging the Computer and Technology sector's loss of 7.96% and the S&P 500's loss of 4.6% in that time.

Donnelley Financial Solutions will be looking to display strength as it nears its next earnings release. On that day, Donnelley Financial Solutions is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 4.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $220.4 million, down 10.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $906 million, which would represent changes of -3.27% and -8.79%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Donnelley Financial Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.37% lower. Donnelley Financial Solutions is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Donnelley Financial Solutions is holding a Forward P/E ratio of 6.59. For comparison, its industry has an average Forward P/E of 34.31, which means Donnelley Financial Solutions is trading at a discount to the group.

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.

To follow DFIN in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Donnelley Financial Solutions (DFIN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.