PCM (PCMI) closed at $22.95 in the latest trading session, marking a +1.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.99%.
Heading into today, shares of the technology and consumer electronics company had gained 2.04% over the past month, outpacing the Consumer Discretionary sector's gain of 1.56% and lagging the S&P 500's gain of 3.01% in that time.
PCMI will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2018. On that day, PCMI is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 47.06%. Our most recent consensus estimate is calling for quarterly revenue of $555.46 million, up 1.83% from the year-ago period.
PCMI's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $2.20 billion. These results would represent year-over-year changes of +82.5% and +0.27%, respectively.
Any recent changes to analyst estimates for PCMI should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PCMI is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that PCMI has a Forward P/E ratio of 10.3 right now. For comparison, its industry has an average Forward P/E of 19.95, which means PCMI is trading at a discount to the group.
We can also see that PCMI currently has a PEG ratio of 0.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consumer Products - Discretionary was holding an average PEG ratio of 1.76 at yesterday's closing price.
The Consumer Products - Discretionary industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 19% 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.
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