In the latest trading session, VMware (VMW) closed at $144.56, marking a -0.3% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.71%. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.
Prior to today's trading, shares of the cloud computing company had lost 3.08% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.7% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from VMW as it approaches its next earnings report date. This is expected to be March 7, 2019. The company is expected to report EPS of $1.87, up 11.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.50 billion, up 8.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.23 per share and revenue of $8.88 billion. These totals would mark changes of +20.04% and +12.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for VMW. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.03% higher within the past month. VMW is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, VMW currently has a Forward P/E ratio of 23.27. Its industry sports an average Forward P/E of 25.26, so we one might conclude that VMW is trading at a discount comparatively.
Meanwhile, VMW's PEG ratio is currently 1.66. 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 Computer - Software was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 17% 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.
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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.