In the latest trading session, Zix (ZIXI) closed at $6.42, marking a -0.47% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.64%.
Heading into today, shares of the e-mail encryption company had gained 8.77% over the past month, outpacing the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 3.25% in that time.
ZIXI will be looking to display strength as it nears its next earnings release, which is expected to be November 9, 2020. On that day, ZIXI is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 15.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $53.76 million, up 12.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $214.80 million, which would represent changes of +145.83% and +23.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ZIXI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZIXI is currently a Zacks Rank #3 (Hold).
Investors should also note ZIXI's current valuation metrics, including its Forward P/E ratio of 10.93. For comparison, its industry has an average Forward P/E of 40.48, which means ZIXI is trading at a discount to the group.
It is also worth noting that ZIXI currently has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.49 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 124, which puts it in the top 50% 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.
To follow ZIXI in the coming trading sessions, be sure to utilize 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.