Slack Technologies (WORK) Gains But Lags Market: What You Should Know
Slack Technologies (WORK) closed at $27.29 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 0.9% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.13%.
Coming into today, shares of the work messaging service had gained 11.89% in the past month. In that same time, the Business Services sector gained 16.66%, while the S&P 500 gained 14.3%.
Investors will be hoping for strength from WORK as it approaches its next earnings release. On that day, WORK is projected to report earnings of -$0.07 per share, which would represent year-over-year growth of 73.08%. Meanwhile, our latest consensus estimate is calling for revenue of $186.54 million, up 38.36% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.22 per share and revenue of $851.22 million. These totals would mark changes of +21.43% and +35.02%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for WORK. 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.
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.
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 has moved 4.05% lower within the past month. WORK is holding a Zacks Rank of #3 (Hold) right now.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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