Otter Tail (OTTR) closed at $69.80 in the latest trading session, marking a -0.6% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the power company and manufacturer had lost 14.07% over the past month. This has lagged the Utilities sector's loss of 4.89% and the S&P 500's loss of 9.06% in that time.
Otter Tail will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.70, up 34.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Otter Tail is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Otter Tail's current valuation metrics, including its Forward P/E ratio of 9.92. This valuation marks a discount compared to its industry's average Forward P/E of 19.04.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
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