In the latest trading session, Nice (NICE) closed at $134.53, marking a +1.69% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.23%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 1.86%.
The software company's stock has dropped by 9.25% in the past month, falling short of the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
Market participants will be closely following the financial results of Nice in its upcoming release. On that day, Nice is projected to report earnings of $3.17 per share, which would represent year-over-year growth of 10.07%. In the meantime, our current consensus estimate forecasts the revenue to be $727.92 million, indicating a 5.5% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.44 per share and revenue of $2.93 billion, which would represent changes of +11.87% and +7%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nice. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nice currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Nice is at present trading with a Forward P/E ratio of 10.64. This denotes a discount relative to the industry average Forward P/E of 30.18.
We can also see that NICE currently has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.14 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% 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.
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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Nice (NICE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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