Harmonic (HLIT) closed at $11.44 in the latest trading session, marking a +0.79% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the video services provider had gained 5% in the past month. In that same time, the Computer and Technology sector lost 5.11%, while the S&P 500 gained 0.22%.
Harmonic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Harmonic to post earnings of $0.14 per share. This would mark a year-over-year decline of 30%. Meanwhile, our latest consensus estimate is calling for revenue of $151.93 million, up 15.51% from the prior-year quarter.
Any recent changes to analyst estimates for Harmonic should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Harmonic is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Harmonic’s current valuation metrics, including its Forward P/E ratio of 22.25. This represents a premium compared to its industry’s average Forward P/E of 20.29.
Investors should also note that HLIT has a PEG ratio of 1.48 right now. 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. HLIT’s industry had an average PEG ratio of 1.48 as of yesterday’s close.
The Communication – Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 35% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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