Guidewire Software GWRE closed the most recent trading day at $96.70, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 0.38%.
Heading into today, shares of the provider of software to the insurance industry had gained 4.66% over the past month, outpacing the Computer and Technology sector's gain of 0.25% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from GWRE as it approaches its next earnings release, which is expected to be September 5, 2018. In that report, analysts expect GWRE to post earnings of $0.76 per share. This would mark year-over-year growth of 28.81%. Our most recent consensus estimate is calling for quarterly revenue of $239.25 million, up 32.11% from the year-ago period.
Investors might also notice recent changes to analyst estimates for GWRE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. GWRE is currently a Zacks Rank #3 (Hold).
Digging into valuation, GWRE currently has a Forward P/E ratio of 75.85. For comparison, its industry has an average Forward P/E of 33.11, which means GWRE is trading at a premium to the group.
Also, we should mention that GWRE has a PEG ratio of 9.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Business - Software Services industry currently had an average PEG ratio of 3.31 as of yesterday's close.
The Business - Software Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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