ScanSource (SCSC) Stock Sinks As Market Gains: What You Should Know
ScanSource (SCSC) closed the most recent trading day at $38.43, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily gain of 0.42%.
Heading into today, shares of the technology products distributor had gained 9.8% over the past month, outpacing the Industrial Products sector's gain of 6.86% and the S&P 500's gain of 7.03% in that time.
Investors will be hoping for strength from SCSC as it approaches its next earnings release, which is expected to be November 9, 2021. In that report, analysts expect SCSC to post earnings of $0.75 per share. This would mark year-over-year growth of 78.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $802.2 million, up 2.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $3.32 billion. These totals would mark changes of +17.88% and +4.65%, respectively, from last year.
Any recent changes to analyst estimates for SCSC 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SCSC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SCSC is currently trading at a Forward P/E ratio of 12.07. This represents a discount compared to its industry's average Forward P/E of 23.99.
The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
To follow SCSC in the coming trading sessions, be sure to utilize Zacks.com.
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