Tessco Technologies (TESS) closed the most recent trading day at $16.05, moving -1.83% from the previous trading session. This change lagged the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.
Coming into today, shares of the wireless communications company had gained 8.24% in the past month. In that same time, the Computer and Technology sector gained 4.76%, while the S&P 500 gained 2.14%.
Investors will be hoping for strength from TESS as it approaches its next earnings release. In that report, analysts expect TESS to post earnings of $0.16 per share. This would mark year-over-year growth of 128.57%. Meanwhile, our latest consensus estimate is calling for revenue of $147.88 million, down 0.7% from the prior-year quarter.
TESS's full-year Zacks Consensus Estimates are calling for earnings of $0.76 per share and revenue of $609.73 million. These results would represent year-over-year changes of +38.18% and +5.08%, respectively.
Investors should also note any recent changes to analyst estimates for TESS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TESS is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, TESS is holding a Forward P/E ratio of 21.51. For comparison, its industry has an average Forward P/E of 20.13, which means TESS is trading at a premium to the group.
The Communication - Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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