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Shenandoah Telecommunications (SHEN) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Shenandoah Telecommunications (SHEN) closed at $44.25, marking a -1.95% move from the previous day. This change lagged the S&P 500's 1.58% loss on the day. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Heading into today, shares of the telecommunications service provider in parts of Maryland, Pennsylvania, Virginia and West Virginia had lost 5.76% over the past month, lagging the Utilities sector's loss of 1.81% and outpacing the S&P 500's loss of 6.62% in that time.

Investors will be hoping for strength from SHEN as it approaches its next earnings release, which is expected to be March 21, 2019. In that report, analysts expect SHEN to post earnings of $0.31 per share. This would mark year-over-year growth of 121.43%. Our most recent consensus estimate is calling for quarterly revenue of $160.76 million, up 6.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $627.30 million, which would represent changes of +250% and +2.75%, respectively, from the prior year.

Any recent changes to analyst estimates for SHEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 13.22% higher within the past month. SHEN is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that SHEN has a Forward P/E ratio of 49.41 right now. Its industry sports an average Forward P/E of 15.54, so we one might conclude that SHEN is trading at a premium comparatively.

The Diversified Communication Services industry is part of the Utilities sector. This group has a Zacks Industry Rank of 49, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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