Shenandoah Telecommunications (SHEN) closed the most recent trading day at $46.72, moving -0.97% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.91%. At the same time, the Dow lost 2.02%, and the tech-heavy Nasdaq lost 2.26%.
Heading into today, shares of the telecommunications service provider in parts of Maryland, Pennsylvania, Virginia and West Virginia had gained 0.11% over the past month, lagging the Utilities sector's gain of 3.07% and outpacing the S&P 500's loss of 2.51% in that time.
SHEN will be looking to display strength as it nears its next earnings release, which is expected to be March 21, 2019. The company is expected to report EPS of $0.31, up 121.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $160.76 million, up 6.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.91 per share and revenue of $627.30 million. These totals would mark changes of +250% and +2.75%, respectively, from last year.
Any recent changes to analyst estimates for SHEN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 13.22% higher within the past month. SHEN is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, SHEN currently has a Forward P/E ratio of 51.66. This valuation marks a premium compared to its industry's average Forward P/E of 15.85.
The Diversified Communication Services industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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