Navient (NAVI) Stock Sinks As Market Gains: What You Should Know
Navient (NAVI) closed at $23.16 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's 0.03% gain on the day.
Prior to today's trading, shares of the student loan servicing company had gained 11.91% over the past month. This has outpaced the Finance sector's gain of 3.6% and the S&P 500's gain of 3.02% in that time.
NAVI will be looking to display strength as it nears its next earnings release. In that report, analysts expect NAVI to post earnings of $0.83 per share. This would mark a year-over-year decline of 16.16%. Meanwhile, our latest consensus estimate is calling for revenue of $274.95 million, down 18.17% from the prior-year quarter.
NAVI's full-year Zacks Consensus Estimates are calling for earnings of $4.26 per share and revenue of $1.11 billion. These results would represent year-over-year changes of +31.48% and -14.57%, respectively.
Any recent changes to analyst estimates for NAVI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 remained stagnant within the past month. NAVI is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NAVI has a Forward P/E ratio of 5.45 right now. This represents a discount compared to its industry's average Forward P/E of 7.18.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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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