EGain (EGAN) Gains But Lags Market: What You Should Know
In the latest trading session, eGain (EGAN) closed at $7.10, marking a +1.28% move from the previous day. This move lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.48%, and the tech-heavy Nasdaq gained 1.95%.
Heading into today, shares of the maker of customer engagement software had lost 13.56% over the past month, lagging the Computer and Technology sector's loss of 4.12% and the S&P 500's loss of 4.19% in that time.
Investors will be hoping for strength from EGAN as it approaches its next earnings release. In that report, analysts expect EGAN to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $17.38 million, up 11.48% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for EGAN. These revisions help to show the ever-changing nature of near-term business trends. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EGAN is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that EGAN has a Forward P/E ratio of 30.48 right now. For comparison, its industry has an average Forward P/E of 52.95, which means EGAN is trading at a discount to the group.
Meanwhile, EGAN's PEG ratio is currently 1.02. 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 Internet - Software industry currently had an average PEG ratio of 2.78 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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.
Click to get this free report
eGain Corporation (EGAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research