Plexus (PLXS) Gains But Lags Market: What You Should Know
Plexus (PLXS) closed at $108.11 in the latest trading session, marking a +0.49% move from the prior day. The stock lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the electronic manufacturing services company had gained 3.02% in the past month. In that same time, the Computer and Technology sector lost 0.58%, while the S&P 500 gained 0.09%.
Investors will be hoping for strength from Plexus as it approaches its next earnings release. The company is expected to report EPS of $1.47, up 67.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 35.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $4.49 billion, which would represent changes of +21.54% and +17.75%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Plexus. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Plexus is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Plexus currently has a Forward P/E ratio of 17.99. Its industry sports an average Forward P/E of 11.15, so we one might conclude that Plexus is trading at a premium comparatively.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Plexus Corp. (PLXS) : Free Stock Analysis Report
