Nice (NICE) closed at $164.42 in the latest trading session, marking a +0.4% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.07%.
The software company's stock has climbed by 9.89% in the past month, falling short of the Computer and Technology sector's gain of 18.3% and the S&P 500's gain of 13.74%.
Investors will be eagerly watching for the performance of Nice in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.84, showcasing a 10.08% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $699.39 million, up 6.08% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.17 per share and a revenue of $2.92 billion, representing changes of +9.44% and +6.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nice. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.58% lower. Nice is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Nice is holding a Forward P/E ratio of 13.45. This expresses a discount compared to the average Forward P/E of 28.22 of its industry.
One should further note that NICE currently holds a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.19.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nice (NICE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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