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TiVo (TIVO) Gains As Market Dips: What You Should Know

Zacks Equity Research

TiVo (TIVO) closed the most recent trading day at $8.23, moving +1.6% from the previous trading session. The stock outpaced 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 digital video recording company had gained 6.37% over the past month. This has outpaced the Computer and Technology sector's gain of 4.71% and the S&P 500's gain of 2.7% in that time.

TIVO will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2019. The company is expected to report EPS of $0.15, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $149.68 million, down 9.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.83 per share and revenue of $656.19 million, which would represent changes of +10.67% and -5.7%, respectively, from the prior year.

Any recent changes to analyst estimates for TIVO should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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 remained stagnant within the past month. TIVO is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, TIVO is holding a Forward P/E ratio of 9.82. This valuation marks a discount compared to its industry's average Forward P/E of 28.04.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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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