Synchronoss (SNCR) closed at $6.14 in the latest trading session, marking a +2.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.11%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
Shares of the mobile services company have depreciated by 7.69% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.67%, and the S&P 500's gain of 3.92%.
The upcoming earnings release of Synchronoss will be of great interest to investors. On that day, Synchronoss is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 47.92%. Alongside, our most recent consensus estimate is anticipating revenue of $42.59 million, indicating a 2% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $172.42 million, indicating changes of -28.22% and -0.68%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Synchronoss. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 23.91% fall in the Zacks Consensus EPS estimate. Synchronoss is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, Synchronoss is at present trading with a Forward P/E ratio of 5.13. Its industry sports an average Forward P/E of 28, so one might conclude that Synchronoss is trading at a discount comparatively.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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