Why eGain (EGAN) Outpaced the Stock Market Today
eGain (EGAN) closed the latest trading day at $8.31, indicating a +0.48% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq added 0.2%.
Shares of the maker of customer engagement software have appreciated by 9.39% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71%.
The investment community will be paying close attention to the earnings performance of eGain in its upcoming release. The company is expected to report EPS of $0.08, up 60% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $23.53 million, reflecting an 8.09% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.39 per share and a revenue of $97.67 million, representing changes of +56% and -0.35%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for eGain. These revisions help to show the ever-changing nature of near-term business trends. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, eGain holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that eGain has a Forward P/E ratio of 21.2 right now. This signifies a discount in comparison to the average Forward P/E of 39.53 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eGain Corporation (EGAN) : Free Stock Analysis Report
