Why VeriSign (VRSN) Dipped More Than Broader Market Today
In the latest trading session, VeriSign (VRSN) closed at $206.65, marking a -1.82% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.36%.
Shares of the internet infrastructure services provider have appreciated by 0.56% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
The investment community will be closely monitoring the performance of VeriSign in its forthcoming earnings report. The company is forecasted to report an EPS of $1.83, showcasing a 7.65% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $381.01 million, reflecting a 3.2% rise from the equivalent quarter last year.
VRSN's full-year Zacks Consensus Estimates are calling for earnings of $7.15 per share and revenue of $1.49 billion. These results would represent year-over-year changes of +14.58% and +4.83%, respectively.
Any recent changes to analyst estimates for VeriSign should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. VeriSign is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, VeriSign currently has a Forward P/E ratio of 29.44. This indicates a premium in contrast to its industry's Forward P/E of 28.72.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 13, finds itself in the top 6% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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VeriSign, Inc. (VRSN) : Free Stock Analysis Report
