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Flexible Solutions International (FSI) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Flexible Solutions International (FSI) closed at $3.92 in the latest trading session, marking a -1.75% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, added 0.85%.

Prior to today's trading, shares of the company had gained 2.05% over the past month. This has lagged the Basic Materials sector's gain of 2.56% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from FSI as it approaches its next earnings release. On that day, FSI is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.35 million, up 101.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.31 per share and revenue of $32.74 million. These totals would mark changes of +342.86% and +83.62%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FSI. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. FSI is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that FSI has a Forward P/E ratio of 12.87 right now. Its industry sports an average Forward P/E of 16.66, so we one might conclude that FSI is trading at a discount comparatively.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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