In the latest trading session, Bandwidth (BAND) closed at $26.26, marking a -0.91% move from the previous day. This change was narrower than the S&P 500’s 1.38% loss on the day. Meanwhile, the Dow lost 1.26%, and the Nasdaq, a tech-heavy index, lost 5.67%.
Coming into today, shares of the enterprise software developer had gained 27.53% in the past month. In that same time, the Computer and Technology sector gained 9.94%, while the S&P 500 gained 3.87%.
Investors will be hoping for strength from Bandwidth as it approaches its next earnings release, which is expected to be February 23, 2023. The company is expected to report EPS of $0.04, down 55.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $146.64 million, up 16.26% from the prior-year quarter.
Any recent changes to analyst estimates for Bandwidth should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 past month, the Zacks Consensus EPS estimate remained stagnant. Bandwidth is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Bandwidth is holding a Forward P/E ratio of 41.8. This valuation marks a premium compared to its industry’s average Forward P/E of 12.34.
We can also see that BAND currently has a PEG ratio of 1.67. 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 Communication – Infrastructure industry currently had an average PEG ratio of 0.92 as of yesterday’s close.
The Communication – Infrastructure industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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