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KDDI Corporation Unsponsored ADR (KDDIY) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

KDDI Corporation Unsponsored ADR (KDDIY) closed the most recent trading day at $13.05, moving -1.26% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.06%.

Coming into today, shares of the company had gained 1.09% in the past month. In that same time, the Computer and Technology sector gained 6.54%, while the S&P 500 gained 3.95%.

Wall Street will be looking for positivity from KDDIY as it approaches its next earnings report date. Our most recent consensus estimate is calling for quarterly revenue of $12.61 billion, up 8.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.27 per share and revenue of $48.14 billion, which would represent changes of +8.55% and +5.28%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for KDDIY. 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. 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.

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 0.79% higher within the past month. KDDIY currently has a Zacks Rank of #2 (Buy).

Investors should also note KDDIY's current valuation metrics, including its Forward P/E ratio of 11.71. For comparison, its industry has an average Forward P/E of 11.76, which means KDDIY is trading at a discount to the group.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% 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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