U.S. Markets close in 6 mins

EGain (EGAN) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

eGain (EGAN) closed at $10.36 in the latest trading session, marking a -0.1% move from the prior day. This move lagged the S&P 500's daily gain of 0.46%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.59%.

Coming into today, shares of the maker of customer engagement software had lost 9.04% in the past month. In that same time, the Computer and Technology sector gained 5.33%, while the S&P 500 gained 3.24%.

Investors will be hoping for strength from EGAN as it approaches 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.

Any recent changes to analyst estimates for EGAN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate 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 54.58. This represents a discount compared to its industry's average Forward P/E of 55.5.

Also, we should mention that EGAN has a PEG ratio of 1.82. 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 industry currently had an average PEG ratio of 3.11 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eGain Corporation (EGAN) : Free Stock Analysis Report
To read this article on Zacks.com click here.