In the latest trading session, eGain (EGAN) closed at $10.41, marking no change from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.34%.
Heading into today, shares of the maker of customer engagement software had lost 7.14% over the past month, lagging the Computer and Technology sector's gain of 1.96% and the S&P 500's gain of 0.64% in that time.
EGAN will be looking to display strength as it nears its next earnings release. In that report, analysts expect EGAN to post earnings of $0.03 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $16.92 million, up 7.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.19 per share and revenue of $67.71 million. These totals would mark changes of +216.67% and +10.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for EGAN. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. EGAN is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, EGAN currently has a Forward P/E ratio of 54.79. For comparison, its industry has an average Forward P/E of 55.6, which means EGAN is trading at a discount to the group.
Also, we should mention that EGAN has a PEG ratio of 1.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.08 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 57, which puts it in the top 23% 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.
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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