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

Zacks Equity Research
In the latest trading session, Barrick Gold (GOLD) closed at $17.22, marking no change from the previous day.

In the latest trading session, Steelcase (SCS) closed at $16.93, marking a +0.12% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 1.49%, while the tech-heavy Nasdaq added 1.46%.

Coming into today, shares of the office furniture maker had gained 3.43% in the past month. In that same time, the Business Services sector gained 6.85%, while the S&P 500 gained 4.57%.

Wall Street will be looking for positivity from SCS as it approaches its next earnings report date. In that report, analysts expect SCS to post earnings of $0.30 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.18 per share and revenue of $3.39 billion, which would represent changes of +29.67% and +10.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SCS. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SCS is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, SCS is holding a Forward P/E ratio of 14.33. This valuation marks a premium compared to its industry's average Forward P/E of 12.65.

The Business - Office Products industry is part of the Business Services sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% 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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