In the latest trading session, eGain (EGAN) closed at $7.96, marking a -1.97% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.
Coming into today, shares of the maker of customer engagement software had gained 3.97% in the past month. In that same time, the Computer and Technology sector gained 3.84%, while the S&P 500 gained 2.68%.
Wall Street will be looking for positivity from EGAN as it approaches its next earnings report date. The company is expected to report EPS of $0.04, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.38 million, up 11.48% from the year-ago period.
Investors should also note any recent changes to analyst estimates for EGAN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGAN currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that EGAN has a Forward P/E ratio of 35.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 66.68.
It is also worth noting that EGAN currently has a PEG ratio of 1.18. 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 3.6 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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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