NIC (EGOV) Gains But Lags Market: What You Should Know
NIC (EGOV) closed at $27 in the latest trading session, marking a +0.3% move from the prior day. The stock lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 2.55%.
Coming into today, shares of the developer of government online services, websites and mobile applications had gained 4.22% in the past month. In that same time, the Computer and Technology sector gained 2.4%, while the S&P 500 lost 0.35%.
EGOV will be looking to display strength as it nears its next earnings release, which is expected to be February 11, 2021. In that report, analysts expect EGOV to post earnings of $0.26 per share. This would mark year-over-year growth of 73.33%. Our most recent consensus estimate is calling for quarterly revenue of $122.04 million, up 40.16% from the year-ago period.
Investors might also notice recent changes to analyst estimates for EGOV. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGOV is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that EGOV has a Forward P/E ratio of 26.22 right now. This represents a discount compared to its industry's average Forward P/E of 84.79.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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