Encore Wire (WIRE) closed at $118.95 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the copper wire maker had lost 15.24% in the past month. In that same time, the Industrial Products sector lost 6.9%, while the S&P 500 lost 7.59%.
Encore Wire will be looking to display strength as it nears its next earnings release. In that report, analysts expect Encore Wire to post earnings of $4.63 per share. This would mark a year-over-year decline of 45.59%.
Any recent changes to analyst estimates for Encore Wire should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Encore Wire currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Encore Wire's current valuation metrics, including its Forward P/E ratio of 4.48. For comparison, its industry has an average Forward P/E of 7.65, which means Encore Wire is trading at a discount to the group.
The Wire and Cable Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% 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.
To follow WIRE in the coming trading sessions, be sure to utilize Zacks.com.
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