eGain (EGAN) closed at $6.83 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.68%.
Prior to today's trading, shares of the maker of customer engagement software had lost 12.41% over the past month. This has lagged the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.62% in that time.
EGAN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.04, up 300% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.38 million, up 11.48% from the prior-year quarter.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EGAN is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that EGAN has a Forward P/E ratio of 30.09 right now. This represents a discount compared to its industry's average Forward P/E of 52.72.
We can also see that EGAN currently has a PEG ratio of 1. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.74 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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 EGAN in the coming trading sessions, be sure to utilize Zacks.com.
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eGain Corporation (EGAN) : Free Stock Analysis Report
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