eGain (EGAN) closed the most recent trading day at $6.96, moving -1.83% from the previous trading session. This change lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.39%.
Coming into today, shares of the maker of customer engagement software had lost 7.32% in the past month. In that same time, the Computer and Technology sector lost 4.48%, while the S&P 500 lost 4.84%.
EGAN will be looking to display strength as it nears its next earnings release. In that report, analysts expect EGAN to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGAN is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, EGAN is holding a Forward P/E ratio of 30.83. For comparison, its industry has an average Forward P/E of 55.04, which means EGAN is trading at a discount to the group.
We can also see that EGAN currently has a PEG ratio of 1.03. 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 industry currently had an average PEG ratio of 2.82 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% 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.
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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