In the latest trading session, eGain (EGAN) closed at $7.74, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 1.19%.
Coming into today, shares of the maker of customer engagement software had lost 1.51% in the past month. In that same time, the Computer and Technology sector gained 4.47%, while the S&P 500 gained 2.62%.
EGAN will be looking to display strength as it nears its next earnings release. In that report, analysts expect EGAN to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.38 million, up 11.48% from the year-ago period.
Investors might also notice recent changes to analyst estimates for EGAN. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGAN currently has a Zacks Rank of #2 (Buy).
Digging into valuation, EGAN currently has a Forward P/E ratio of 34.09. For comparison, its industry has an average Forward P/E of 66.33, which means EGAN is trading at a discount to the group.
Investors should also note that EGAN has a PEG ratio of 1.14 right now. 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 Internet - Software was holding an average PEG ratio of 3.57 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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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