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Kemet (KEM) Stock Sinks As Market Gains: What You Should Know

Kemet (KEM) closed the most recent trading day at $17.87, moving -1.97% from the previous trading session. This change lagged the S&P 500's 0.76% gain on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.71%.

Heading into today, shares of the electronic capacitor maker had gained 8.45% over the past month, outpacing the Computer and Technology sector's loss of 0.35% and the S&P 500's gain of 0.75% in that time.

KEM will be looking to display strength as it nears its nex t earnings release, which is expected to be January 31, 2019. The company is expected to report EPS of $0.93, up 78.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $353.36 million, up 15.32% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $1.39 billion, which would represent changes of +90.86% and +15.73%, respectively, from the prior year.

Any recent changes to analyst estimates for KEM should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KEM is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note KEM's current valuation metrics, including its Forward P/E ratio of 5.46. This represents a discount compared to its industry's average Forward P/E of 13.78.

The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 43% 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.

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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