In the latest trading session, Kemet (KEM) closed at $17.90, marking a -0.83% move from the previous day. This change was narrower than the S&P 500's 0.95% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Coming into today, shares of the electronic capacitor maker had gained 6.99% in the past month. In that same time, the Computer and Technology sector gained 4.37%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from KEM as it approaches its nex t earnings release. On that day, KEM is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $343.47 million, up 4.84% from the year-ago period.
KEM's full-year Zacks Consensus Estimates are calling for earnings of $3.11 per share and revenue of $1.39 billion. These results would represent year-over-year changes of -12.15% and +0.78%, respectively.
It is also important to note the recent changes to analyst estimates for KEM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KEM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, KEM currently has a Forward P/E ratio of 5.8. Its industry sports an average Forward P/E of 17.41, so we one might conclude that KEM is trading at a discount comparatively.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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