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TOPCON (TOPCF) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, TOPCON (TOPCF - Free Report) closed at $14.17, marking a -0.44% move from the previous day. This change lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.7%.

Heading into today, shares of the company had gained 12.24% over the past month, lagging the Business Services sector's gain of 14.25% and outpacing the S&P 500's gain of 12.15% in that time.

Investors will be hoping for strength from TOPCON as it approaches its next earnings release. In that report, analysts expect TOPCON to post earnings of $0.15 per share. This would mark a year-over-year decline of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355.6 million, up 0.06% from the year-ago period.

TOPCF's full-year Zacks Consensus Estimates are calling for earnings of $0.94 per share and revenue of $1.53 billion. These results would represent year-over-year changes of +2.17% and -2.25%, respectively.

Any recent changes to analyst estimates for TOPCON should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 2.08% lower. TOPCON is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that TOPCON has a Forward P/E ratio of 15.14 right now. For comparison, its industry has an average Forward P/E of 26.12, which means TOPCON is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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