Otter Tail (OTTR) Gains But Lags Market: What You Should Know
Otter Tail (OTTR) closed at $65.06 in the latest trading session, marking a +0.65% move from the prior day. This change lagged the S&P 500's 1.19% gain on the day. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the power company and manufacturer had lost 0.78% in the past month. In that same time, the Utilities sector lost 11.09%, while the S&P 500 lost 0.84%.
Wall Street will be looking for positivity from Otter Tail as it approaches its next earnings report date. This is expected to be October 31, 2022. The company is expected to report EPS of $1.70, up 34.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $389.3 million, up 23.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.08 per share and revenue of $1.56 billion, which would represent changes of +67.38% and +30.01%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Otter Tail. 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. 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 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. Otter Tail is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Otter Tail currently has a Forward P/E ratio of 9.13. This represents a discount compared to its industry's average Forward P/E of 16.2.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
To follow OTTR in the coming trading sessions, be sure to utilize Zacks.com.
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