In the latest trading session, Clearfield (CLFD) closed at $70.76, marking a +1.33% move from the previous day. This move outpaced the S&P 500’s daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the maker of fiber optic management products had gained 4.35% over the past month, outpacing the Computer and Technology sector’s loss of 4.36% and the S&P 500’s loss of 1.37% in that time.
Wall Street will be looking for positivity from Clearfield as it approaches its next earnings report date. In that report, analysts expect Clearfield to post earnings of $0.49 per share. This would mark year-over-year growth of 113.04%. Meanwhile, our latest consensus estimate is calling for revenue of $42 million, up 55.04% from the prior-year quarter.
CLFD’s full-year Zacks Consensus Estimates are calling for earnings of $1.85 per share and revenue of $169 million. These results would represent year-over-year changes of +25.85% and +20.07%, respectively.
Investors should also note any recent changes to analyst estimates for Clearfield. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Clearfield currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Clearfield is currently trading at a Forward P/E ratio of 37.75. This represents a premium compared to its industry’s average Forward P/E of 24.15.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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