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Steelcase (SCS) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Steelcase (SCS) closed at $17.51 in the latest trading session, marking a -1.74% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.

Prior to today's trading, shares of the office furniture maker had lost 1.22% over the past month. This has lagged the Business Services sector's gain of 1.42% and the S&P 500's gain of 2.66% in that time.

SCS will be looking to display strength as it nears its next earnings release. On that day, SCS is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 2.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $935.70 million, up 3.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $3.73 billion, which would represent changes of +12.5% and +8.43%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SCS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SCS currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SCS currently has a Forward P/E ratio of 13.2. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.2.

The Business - Office Products industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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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