NeoPhotonics (NPTN) closed at $8.64 in the latest trading session, marking a -0.12% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.31%, while the tech-heavy Nasdaq lost 2.29%.
Coming into today, shares of the maker of components for communications networks had gained 3.47% in the past month. In that same time, the Computer and Technology sector gained 5.9%, while the S&P 500 gained 5.2%.
NPTN will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2020. In that report, analysts expect NPTN to post earnings of $0.12 per share. This would mark year-over-year growth of 500%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $98.05 million, up 20.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $397.39 million, which would represent changes of +5500% and +11.37%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NPTN. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. NPTN is currently a Zacks Rank #3 (Hold).
Investors should also note NPTN's current valuation metrics, including its Forward P/E ratio of 15.45. Its industry sports an average Forward P/E of 30.9, so we one might conclude that NPTN is trading at a discount comparatively.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NeoPhotonics Corporation (NPTN) : Free Stock Analysis Report
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