RPM International (RPM) closed at $79.76 in the latest trading session, marking a -0.4% move from the prior day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Prior to today's trading, shares of the specialty chemicals company had lost 1.56% over the past month. This has lagged the Construction sector's loss of 0.73% and the S&P 500's gain of 1.03% in that time.
Wall Street will be looking for positivity from RPM International as it approaches its next earnings report date. The company is expected to report EPS of $1.32, down 7.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.98 billion, down 0.14% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.26 per share and revenue of $7.22 billion, which would represent changes of +16.39% and +7.66%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for RPM International. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. RPM International currently has a Zacks Rank of #3 (Hold).
Investors should also note RPM International's current valuation metrics, including its Forward P/E ratio of 18.8. This valuation marks a discount compared to its industry's average Forward P/E of 22.58.
Investors should also note that RPM has a PEG ratio of 1.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Paints and Related Products industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Paints and Related Products industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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