Nice (NICE) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Nice (NICE) closed the latest trading day at $222.10, indicating a +0.28% change from the previous session's end. This change lagged the S&P 500's 1.03% gain on the day. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 1.19%.

Prior to today's trading, shares of the software company had lost 9.27% over the past month. This has lagged the Computer and Technology sector's loss of 0.68% and the S&P 500's loss of 1.57% in that time.

Investors will be eagerly watching for the performance of Nice in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 16, 2024. It is anticipated that the company will report an EPS of $2.45, marking a 20.69% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $654.81 million, up 14.5% from the year-ago period.

NICE's full-year Zacks Consensus Estimates are calling for earnings of $10.52 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +19.68% and +14.74%, respectively.

Investors might also notice recent changes to analyst estimates for Nice. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Nice currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Nice is presently being traded at a Forward P/E ratio of 21.06. This denotes a discount relative to the industry's average Forward P/E of 30.53.

It is also worth noting that NICE currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding 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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