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Encore Wire (WIRE) Gains But Lags Market: What You Should Know

·2 min read

In the latest trading session, Encore Wire (WIRE) closed at $125.54, marking a +0.14% move from the previous day. This change lagged the S&P 500's 1.83% gain on the day. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Prior to today's trading, shares of the copper wire maker had gained 3.83% over the past month. This has outpaced the Industrial Products sector's loss of 4.01% and the S&P 500's loss of 5.51% in that time.

Wall Street will be looking for positivity from Encore Wire as it approaches its next earnings report date. 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%.

Investors might also notice recent changes to analyst estimates for Encore Wire. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Encore Wire is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Encore Wire has a Forward P/E ratio of 4.67 right now. This represents a discount compared to its industry's average Forward P/E of 7.54.

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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