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USA Technologies (USAT) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

USA Technologies (USAT) closed at $4.12 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the electronic payment and wireless networking company had lost 18.84% over the past month, lagging the Computer and Technology sector's gain of 5.39% and the S&P 500's gain of 4.16% in that time.

USAT will be looking to display strength as it nears its next earnings release. On that day, USAT is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $42.93 million, up 32.04% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for USAT. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 55.56% higher. USAT currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that USAT has a Forward P/E ratio of 22 right now. This represents a premium compared to its industry's average Forward P/E of 10.35.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.

To follow USAT in the coming trading sessions, be sure to utilize Zacks.com.

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