Encore Wire (WIRE) Falls More Steeply Than Broader Market: What Investors Need to Know

The latest trading session saw Encore Wire (WIRE) ending at $245.03, denoting a -0.66% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.31%. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.27%.

Heading into today, shares of the copper wire maker had gained 11.9% over the past month, outpacing the Industrial Products sector's gain of 7.1% and the S&P 500's gain of 3.05% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Encore Wire in its upcoming earnings disclosure. In that report, analysts expect Encore Wire to post earnings of $3.73 per share. This would mark a year-over-year decline of 42.62%.

It's also important for investors to be aware of any recent modifications to analyst estimates for Encore Wire. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Encore Wire is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Encore Wire is currently being traded at a Forward P/E ratio of 14.93. Its industry sports an average Forward P/E of 16.17, so one might conclude that Encore Wire is trading at a discount comparatively.

The Wire and Cable Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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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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