VeriSign (VRSN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, VeriSign (VRSN) closed at $205.15, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the internet infrastructure services provider had lost 0.16% over the past month, outpacing the Computer and Technology sector's loss of 1.62% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from VeriSign as it approaches its next earnings release. In that report, analysts expect VeriSign to post earnings of $1.74 per share. This would mark year-over-year growth of 10.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $373.79 million, up 4.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $1.49 billion, which would represent changes of +12.5% and +4.68%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VeriSign. 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. 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. The Zacks Consensus EPS estimate has moved 1.59% higher within the past month. VeriSign currently has a Zacks Rank of #2 (Buy).
In terms of valuation, VeriSign is currently trading at a Forward P/E ratio of 29.79. This represents a premium compared to its industry's average Forward P/E of 23.13.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
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VeriSign, Inc. (VRSN) : Free Stock Analysis Report
