In the latest trading session, Strattec Security (STRT) closed at $21.28, marking a -0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 0.52%.
Investors will be hoping for strength from STRT as it approaches its next earnings release. In that report, analysts expect STRT to post earnings of -$1.42 per share. This would mark a year-over-year decline of 294.52%. Our most recent consensus estimate is calling for quarterly revenue of $52.14 million, down 59.49% from the year-ago period.
Investors might also notice recent changes to analyst estimates for STRT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STRT is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note STRT's current valuation metrics, including its Forward P/E ratio of 13.65. Its industry sports an average Forward P/E of 28.86, so we one might conclude that STRT is trading at a discount comparatively.
Meanwhile, STRT's PEG ratio is currently 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. STRT's industry had an average PEG ratio of 2.38 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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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