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Clearfield (CLFD) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Clearfield (CLFD - Free Report) closed at $68.70, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Prior to today's trading, shares of the maker of fiber optic management products had gained 10.09% over the past month. This has outpaced the Computer and Technology sector's loss of 5.93% and the S&P 500's loss of 0.85% in that time.

Investors will be hoping for strength from Clearfield as it approaches its next earnings release. On that day, Clearfield is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 113.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42 million, up 55.04% from the year-ago period.

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 might also notice recent changes to analyst estimates for Clearfield. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Clearfield is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Clearfield has a Forward P/E ratio of 37.62 right now. For comparison, its industry has an average Forward P/E of 26.05, which means Clearfield is trading at a premium to the group.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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