Markets

Kemet (KEM) Stock Moves -0.77%: What You Should Know

In the latest trading session, Kemet (KEM) closed at $16.68, marking a -0.77% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.58%. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Heading into today, shares of the electronic capacitor maker had lost 12.72% over the past month, lagging the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 6.62% in that time.

Wall Street will be looking for positivity from KEM as it approaches its next earnings report date. This is expected to be February 7, 2019. On that day, KEM is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 78.85%. Meanwhile, our latest consensus estimate is calling for revenue of $353.36 million, up 15.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $1.39 billion. These totals would mark changes of +90.86% and +15.73%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KEM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. KEM is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note KEM's current valuation metrics, including its Forward P/E ratio of 5.04. Its industry sports an average Forward P/E of 13.49, 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 group has a Zacks Industry Rank of 87, putting it in the top 34% 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.

You can find more information on all of these metrics, and much 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.


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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