In the latest trading session, StarTek (SRT) closed at $3.47, marking a -1.42% move from the previous day. This change lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the call center operator had lost 13.94% in the past month. In that same time, the Business Services sector lost 9.44%, while the S&P 500 lost 7.95%.
Investors will be hoping for strength from StarTek as it approaches its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $173.01 million, up 0.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.43 per share and revenue of $686.72 million, which would represent changes of +975% and -2.46%, respectively, from the prior year.
Any recent changes to analyst estimates for StarTek should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. StarTek currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, StarTek is holding a Forward P/E ratio of 8.19. This represents a discount compared to its industry's average Forward P/E of 12.82.
The Outsourcing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
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