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Clearfield (CLFD) Dips More Than Broader Markets: What You Should Know

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Clearfield (CLFD - Free Report) closed at $102.55 in the latest trading session, marking a -0.69% move from the prior day. This change lagged the S&P 500's 0.67% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.

Coming into today, shares of the maker of fiber optic management products had gained 10.23% in the past month. In that same time, the Computer and Technology sector lost 5.64%, while the S&P 500 lost 3.76%.

Investors will be hoping for strength from Clearfield as it approaches its next earnings release. The company is expected to report EPS of $0.80, up 50.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.3 million, up 53.18% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Clearfield. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Clearfield currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Clearfield has a Forward P/E ratio of 28.68 right now. Its industry sports an average Forward P/E of 19.78, so we one might conclude that Clearfield is trading at a premium comparatively.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% 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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