U.S. Markets closed

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

Zacks Equity Research

Steelcase (SCS) closed the most recent trading day at $17.50, moving +0.11% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the office furniture maker had gained 4.36% over the past month, lagging the Business Services sector's gain of 6.75% and outpacing the S&P 500's gain of 4.28% 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.

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.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SCS is currently a Zacks Rank #3 (Hold).

Digging into valuation, SCS currently has a Forward P/E ratio of 14.81. For comparison, its industry has an average Forward P/E of 13.39, which means SCS is trading at a premium to the group.

The Business - Office Products industry is part of the Business Services sector. This group has a Zacks Industry Rank of 25, putting 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.

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
Steelcase Inc. (SCS) : Free Stock Analysis Report
To read this article on Zacks.com click here.