Encore Wire (WIRE) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Encore Wire (WIRE) standing at $253.19, reflecting a +1.66% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.86% gain on the day. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
The the stock of copper wire maker has risen by 7.64% in the past month, leading the Industrial Products sector's gain of 5.84% and the S&P 500's gain of 2.84%.
Market participants will be closely following the financial results of Encore Wire in its upcoming release. The company is expected to report EPS of $3.73, down 42.62% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Encore Wire. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Encore Wire is currently a Zacks Rank #2 (Buy).
In terms of valuation, Encore Wire is presently being traded at a Forward P/E ratio of 15.08. Its industry sports an average Forward P/E of 16.14, so one might conclude that Encore Wire is trading at a discount comparatively.
The Wire and Cable Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 17, positioning it in the top 7% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Encore Wire Corporation (WIRE) : Free Stock Analysis Report
