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Everi Holdings (EVRI) Gains But Lags Market: What You Should Know

Zacks Equity Research
Micron (MU) delivered earnings and revenue surprises of 34.62% and 2.68%, respectively, for the quarter ended May 2019. Do the numbers hold clues to what lies ahead for the stock?

Everi Holdings (EVRI) closed the most recent trading day at $10.52, moving +0.1% from the previous trading session. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.78%.

Coming into today, shares of the cash access products company had gained 36.67% in the past month. In that same time, the Business Services sector gained 3.81%, while the S&P 500 gained 1.25%.

EVRI will be looking to display strength as it nears its next earnings release. In that report, analysts expect EVRI to post earnings of $0.02 per share. This would mark a year-over-year decline of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.88 million, up 9.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $507.94 million, which would represent changes of +80% and +8.18%, respectively, from the prior year.

Any recent changes to analyst estimates for EVRI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 has moved 94.44% higher within the past month. EVRI currently has a Zacks Rank of #3 (Hold).

Digging into valuation, EVRI currently has a Forward P/E ratio of 60.06. For comparison, its industry has an average Forward P/E of 20.53, which means EVRI is trading at a premium to the group.

Meanwhile, EVRI's PEG ratio is currently 3. 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 Business - Services industry currently had an average PEG ratio of 2.48 as of yesterday's close.

The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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