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Tech Data (TECD) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Tech Data (TECD) closed at $122.14 in the latest trading session, marking a -0.22% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Prior to today's trading, shares of the information technology products distributor had gained 17.43% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.2% and the S&P 500's gain of 2.7% in that time.

Investors will be hoping for strength from TECD as it approaches its next earnings release. The company is expected to report EPS of $3.01, down 0.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.34 billion, up 0.03% from the year-ago period.

TECD's full-year Zacks Consensus Estimates are calling for earnings of $12.46 per share and revenue of $37.36 billion. These results would represent year-over-year changes of +9.49% and +0.33%, respectively.

Investors should also note any recent changes to analyst estimates for TECD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant within the past month. TECD currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, TECD is holding a Forward P/E ratio of 9.83. This valuation marks a discount compared to its industry's average Forward P/E of 12.7.

Meanwhile, TECD's PEG ratio is currently 2.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TECD's industry had an average PEG ratio of 2.24 as of yesterday's close.

The Retail - Computer Hardware industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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