eGain (EGAN) closed the most recent trading day at $11.16, moving +1.27% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the maker of customer engagement software had lost 5.08% in the past month. In that same time, the Computer and Technology sector gained 4.76%, while the S&P 500 gained 2.14%.
EGAN will be looking to display strength as it nears its next earnings release. On that day, EGAN is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.92 million, up 7.43% from the year-ago period.
EGAN's full-year Zacks Consensus Estimates are calling for earnings of $0.19 per share and revenue of $67.71 million. These results would represent year-over-year changes of +216.67% and +10.44%, respectively.
It is also important to note the recent changes to analyst estimates for EGAN. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGAN currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, EGAN is currently trading at a Forward P/E ratio of 58. This valuation marks a premium compared to its industry's average Forward P/E of 57.55.
Also, we should mention that EGAN has a PEG ratio of 1.93. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.44 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting 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.
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