Earnings Estimates Shifting Larger for Ituran (ITRN): Time to Purchase?

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Earnings Estimates Shifting Larger for Ituran (ITRN): Time to Purchase?

Ituran (ITRN) might be a strong addition to your portfolio given a notable revision within the firm


Ituran (ITRN) might be a strong addition to your portfolio given a notable revision within the firm’s earnings estimates. Whereas the inventory has been gaining recently, the development may proceed since its earnings outlook continues to be enhancing.

Analysts’ rising optimism on the earnings prospects of this maker of monitoring and communications know-how for automobiles is driving estimates larger, which ought to get mirrored in its inventory value. In spite of everything, empirical analysis exhibits a powerful correlation between tendencies in earnings estimate revisions and near-term inventory value actions. This perception is on the core of our inventory score software — the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Robust Purchase) to a Zacks Rank #5 (Robust Promote), has a powerful externally-audited observe document of outperformance, with Zacks #1 Ranked shares producing a median annual return of +25% since 2008.

For Ituran, robust settlement among the many protecting analysts in revising earnings estimates upward has resulted in significant enchancment in consensus estimates for the subsequent quarter and full yr.

The chart beneath exhibits the evolution of ahead 12-month Zacks Consensus EPS estimate:

12 Month EPS

Present-Quarter Estimate Revisions

The earnings estimate of $0.37 per share for the present quarter represents a change of +19.35% from the quantity reported a yr in the past.

During the last 30 days, one estimate has moved larger for Ituran in comparison with no unfavorable revisions. Consequently, the Zacks Consensus Estimate has elevated 19.35%.

Present-Yr Estimate Revisions

For the total yr, the earnings estimate of $1.47 per share represents a change of -6.96% from the year-ago quantity.

The revisions development for the present yr additionally seems fairly promising for Ituran, with one estimate shifting larger over the previous month in comparison with no unfavorable revisions. The consensus estimate has additionally acquired a lift over this time-frame, growing 19.51%.

Favorable Zacks Rank

The promising estimate revisions have helped Ituran earn a Zacks Rank #1 (Robust Purchase). The Zacks Rank is a tried-and-tested score software that helps buyers successfully harness the ability of earnings estimate revisions and make the proper funding choice. You may see the entire checklist of right this moment’s Zacks #1 Rank (Robust Purchase) shares right here.

Our analysis exhibits that shares with Zacks Rank #1 (Robust Purchase) and a couple of (Purchase) considerably outperform the S&P 500.

Backside Line

Buyers have been betting on Ituran due to its strong estimate revisions, as evident from the inventory’s 27.1% achieve over the previous 4 weeks. As its earnings development prospects may push the inventory larger, it’s possible you’ll think about including it to your portfolio instantly.

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.



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