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Steelcase (SCS) Gains But Lags Market: What You Should Know

Zacks Equity Research

Steelcase (SCS) closed the most recent trading day at $17.64, moving +0.06% from the previous trading session. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.44%.

Heading into today, shares of the office furniture maker had gained 4.26% over the past month, lagging the Business Services sector's gain of 4.72% and outpacing the S&P 500's gain of 2.91% in that time.

Investors will be hoping for strength from SCS as it approaches its next earnings release, which is expected to be March 19, 2019. On that day, SCS is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $859.50 million, up 11.23% from the year-ago period.

Any recent changes to analyst estimates for SCS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. SCS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SCS is currently trading at a Forward P/E ratio of 13.06. For comparison, its industry has an average Forward P/E of 13.06, which means SCS is trading at a no noticeable deviation to the group.

The Business - Office Products industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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