Volkswagen AG (VWAGY) closed the most recent trading day at $31.73, moving -0.38% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.75%.
Prior to today’s trading, shares of the company had lost 2.93% over the past month. This has lagged the Auto-Tires-Trucks sector’s gain of 2.38% and the S&P 500’s loss of 0.05% in that time.
Wall Street will be looking for positivity from VWAGY as it approaches its next earnings report date. The company is expected to report EPS of $0.47, down 21.67% from the prior-year quarter.
VWAGY’s full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $292.33 billion. These results would represent year-over-year changes of +61.11% and +15.86%, respectively.
Investors should also note any recent changes to analyst estimates for VWAGY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 9.11% lower. VWAGY currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, VWAGY currently has a Forward P/E ratio of 9.97. This valuation marks a discount compared to its industry’s average Forward P/E of 11.95.
Also, we should mention that VWAGY has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Foreign was holding an average PEG ratio of 0.43 at yesterday’s closing price.
The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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