In the latest trading session, StarTek (SRT) closed at $3.29, marking a +1.86% move from the previous day. This move outpaced the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the call center operator had lost 23.82% in the past month. In that same time, the Business Services sector lost 11.24%, while the S&P 500 lost 8.19%.
StarTek will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $173.01 million, up 0.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.43 per share and revenue of $686.72 million. These totals would mark changes of +975% and -2.46%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for StarTek. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. StarTek is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that StarTek has a Forward P/E ratio of 7.51 right now. For comparison, its industry has an average Forward P/E of 12.42, which means StarTek is trading at a discount to the group.
The Outsourcing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
StarTek, Inc. (SRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research