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

Zacks Equity Research

Steelcase (SCS) closed at $16.65 in the latest trading session, marking a +0.06% move from the prior day. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 1.29%.

Prior to today's trading, shares of the office furniture maker had gained 12.66% over the past month. This has lagged the Business Services sector's gain of 13.38% and outpaced the S&P 500's gain of 12.44% in that time.

Wall Street will be looking for positivity from SCS as it approaches its next earnings report date. This is expected to be March 19, 2019. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.18 per share and revenue of $3.39 billion. These totals would mark changes of +29.67% and +10.92%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SCS. These revisions help to show the ever-changing nature of 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.

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 currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, SCS is holding a Forward P/E ratio of 14.1. This represents a premium compared to its industry's average Forward P/E of 12.23.

The Business - Office Products industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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