Itron (ITRI) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Itron (ITRI) closed at $106.90, marking a -0.31% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.56%.
The energy and water meter company's stock has climbed by 5.45% in the past month, exceeding the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Itron in its upcoming release. It is anticipated that the company will report an EPS of $1.13, marking a 15.31% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $596.37 million, indicating a 6.35% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.59 per share and a revenue of $2.41 billion, representing changes of +36.61% and +10.76%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Itron. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 witnessed a 0.08% decrease. Right now, Itron possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Itron is currently trading at a Forward P/E ratio of 23.37. This represents a discount compared to its industry's average Forward P/E of 25.98.
Investors should also note that ITRI has a PEG ratio of 0.9 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Testing Equipment industry had an average PEG ratio of 2.66.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Itron, Inc. (ITRI) : Free Stock Analysis Report