eGain (EGAN) closed at $8.85 in the latest trading session, marking a +0.34% move from the prior day. This move lagged the S&P 500’s daily gain of 0.59%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the maker of customer engagement software had gained 3.4% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.33%.
Wall Street will be looking for positivity from eGain as it approaches its next earnings report date. On that day, eGain is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.17 million, up 9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.19 per share and revenue of $101.46 million, which would represent changes of -29.63% and +10.34%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for eGain. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. eGain is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, eGain is currently trading at a Forward P/E ratio of 47.68. This represents a premium compared to its industry’s average Forward P/E of 45.9.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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