Yahoo Finance Bandwidth (BAND) Gains But Lags Market: What You Should Know
In the latest trading session, Bandwidth (BAND) closed at $22.16, marking a +0.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Prior to today's trading, shares of the enterprise software developer had lost 11.9% over the past month. This has lagged the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Wall Street will be looking for positivity from Bandwidth as it approaches its next earnings report date. 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 $146.63 million, up 16.25% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Bandwidth. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12.12% higher. Bandwidth is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Bandwidth is currently trading at a Forward P/E ratio of 35.13. For comparison, its industry has an average Forward P/E of 11.92, which means Bandwidth is trading at a premium to the group.
Investors should also note that BAND has a PEG ratio of 1.41 right now. 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. BAND's industry had an average PEG ratio of 0.78 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 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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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Bandwidth Inc. (BAND) : Free Stock Analysis Report
