Exfo (EXFO) closed at $4.19 in the latest trading session, marking a -0.24% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Prior to today's trading, shares of the telecommunications testing company had lost 0.24% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.99% and the S&P 500's loss of 0.88% in that time.
Wall Street will be looking for positivity from EXFO as it approaches its next earnings report date. On that day, EXFO is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $73.57 million, up 1.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $291.30 million, which would represent changes of +133.33% and +8.07%, respectively, from the prior year.
Investors might also notice 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EXFO currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, EXFO is holding a Forward P/E ratio of 20.49. Its industry sports an average Forward P/E of 27.01, 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 156, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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