In the latest trading session, Exfo (EXFO) closed at $4.33, marking a -0.58% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.45%.
Prior to today's trading, shares of the telecommunications testing company had lost 1.8% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.73% and lagged the S&P 500's loss of 1.59% in that time.
Investors will be hoping for strength from EXFO as it approaches its next earnings release. In that report, analysts expect EXFO to post earnings of $0.05 per share. This would mark year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $74.40 million, up 3.02% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $293.80 million. These totals would mark changes of +133.33% and +9%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for EXFO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. EXFO is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, EXFO is holding a Forward P/E ratio of 21.27. Its industry sports an average Forward P/E of 26.96, so we one might conclude that EXFO is trading at a discount comparatively.
The Communication - Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.
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