VeriSign (VRSN) Gains But Lags Market: What You Should Know
VeriSign (VRSN) closed at $200.41 in the latest trading session, marking a +0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Prior to today's trading, shares of the internet infrastructure services provider had lost 2.64% over the past month. This has lagged the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.
VeriSign will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.74, up 10.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $373.79 million, up 4.73% from the prior-year quarter.
VRSN's full-year Zacks Consensus Estimates are calling for earnings of $7.02 per share and revenue of $1.49 billion. These results would represent year-over-year changes of +12.5% and +4.68%, respectively.
Investors might also notice recent changes to analyst estimates for VeriSign. 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. 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 remained stagnant. VeriSign is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, VeriSign currently has a Forward P/E ratio of 28.42. This represents a premium compared to its industry's average Forward P/E of 22.34.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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VeriSign, Inc. (VRSN) : Free Stock Analysis Report
