Encore Wire (WIRE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Encore Wire (WIRE) closed the most recent trading day at $225.50, moving -1.86% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.61%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq lost 2.23%.
Coming into today, shares of the copper wire maker had gained 6.86% in the past month. In that same time, the Industrial Products sector gained 0.37%, while the S&P 500 gained 3.28%.
The investment community will be closely monitoring the performance of Encore Wire in its forthcoming earnings report. The company is predicted to post an EPS of $4.05, indicating a 51.09% decline compared to the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Encore Wire. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Right now, Encore Wire possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Encore Wire is currently being traded at a Forward P/E ratio of 14.46. For comparison, its industry has an average Forward P/E of 14.36, which means Encore Wire is trading at a premium to the group.
The Wire and Cable Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 196, this industry ranks in the bottom 23% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Encore Wire Corporation (WIRE) : Free Stock Analysis Report
