Strattec Security (STRT) Stock Sinks As Market Gains: What You Should Know
Strattec Security (STRT) closed at $45.84 in the latest trading session, marking a -1.97% move from the prior day. This move lagged the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.7%.
Coming into today, shares of the maker of automotive locks and keys had gained 55.35% in the past month. In that same time, the Auto-Tires-Trucks sector gained 23.27%, while the S&P 500 gained 9.12%.
Wall Street will be looking for positivity from STRT as it approaches its next earnings report date. On that day, STRT is projected to report earnings of $1.22 per share, which would represent year-over-year growth of 1120%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $118.90 million, up 11.87% from the year-ago period.
STRT's full-year Zacks Consensus Estimates are calling for earnings of $5.16 per share and revenue of $479.70 million. These results would represent year-over-year changes of +667.03% and +24.5%, respectively.
It is also important to note the recent changes to analyst estimates for STRT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 11.16% higher within the past month. STRT is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, STRT is currently trading at a Forward P/E ratio of 9.06. This represents a discount compared to its industry's average Forward P/E of 22.45.
It is also worth noting that STRT currently has a PEG ratio of 0.6. 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 2.15 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow STRT in the coming trading sessions, be sure to utilize Zacks.com.
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