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Pctel (PCTI) Gains But Lags Market: What You Should Know

Zacks Equity Research

Pctel (PCTI) closed at $7.25 in the latest trading session, marking a +0.55% move from the prior day. This move lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.01%.

Prior to today's trading, shares of the provider of antennas and services for wireless networks had lost 3.87% over the past month. This has lagged the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 1.38% in that time.

Investors will be hoping for strength from PCTI as it approaches its next earnings release, which is expected to be November 7, 2019. In that report, analysts expect PCTI to post earnings of $0.12 per share. This would mark year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $23.65 million, up 28.32% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.41 per share and revenue of $92.04 million, which would represent changes of +1125% and +10.92%, respectively, from the prior year.

Any recent changes to analyst estimates for PCTI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PCTI currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, PCTI is holding a Forward P/E ratio of 17.58. This valuation marks a discount compared to its industry's average Forward P/E of 21.03.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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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