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The most recent trading session ended with Itron (ITRI) standing at $103.36, reflecting a -0.24% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
The energy and water meter company's stock has dropped by 7.44% in the past month, falling short of the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2%.
The investment community will be paying close attention to the earnings performance of Itron in its upcoming release. The company is predicted to post an EPS of $1.05, indicating a 14.63% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $603.26 million, indicating a 4.52% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Itron. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. At present, Itron boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Itron is holding a Forward P/E ratio of 21.36. This signifies a discount in comparison to the average Forward P/E of 24.4 for its industry.
One should further note that ITRI currently holds a PEG ratio of 0.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Testing Equipment was holding an average PEG ratio of 2.26 at yesterday's closing price.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.