CenturyLink (CTL) Gains But Lags Market: What You Should Know

CenturyLink (CTL) closed at $8.80 in the latest trading session, marking a +0.11% move from the prior day. This change lagged the S&P 500's 2.28% gain on the day. Meanwhile, the Dow gained 2.24%, and the Nasdaq, a tech-heavy index, added 1.72%.

Prior to today's trading, shares of the communications company had lost 30.4% over the past month. This has lagged the Computer and Technology sector's loss of 12.66% and the S&P 500's loss of 16.08% in that time.

Investors will be hoping for strength from CTL as it approaches its next earnings release. On that day, CTL is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 5.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.49 billion, down 2.84% from the year-ago period.

CTL's full-year Zacks Consensus Estimates are calling for earnings of $1.46 per share and revenue of $21.81 billion. These results would represent year-over-year changes of +10.61% and -2.64%, respectively.

Any recent changes to analyst estimates for CTL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

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. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. CTL is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CTL is holding a Forward P/E ratio of 6.01. This represents a discount compared to its industry's average Forward P/E of 14.7.

Investors should also note that CTL has a PEG ratio of 0.87 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. Wireless National stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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