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Bandwidth (BAND) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Bandwidth (BAND - Free Report) closed at $22.98, marking a +1.64% move from the previous day. This move outpaced the S&P 500's daily gain of 1.1%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 6.59%.

Heading into today, shares of the enterprise software developer had lost 0.13% over the past month, lagging the Computer and Technology sector's gain of 10.59% and the S&P 500's gain of 4.58% in that time.

Wall Street will be looking for positivity from Bandwidth as it approaches its next earnings report date. In that report, analysts expect Bandwidth to post earnings of $0.04 per share. This would mark a year-over-year decline of 55.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $146.64 million, up 16.26% from the year-ago period.

Any recent changes to analyst estimates for Bandwidth should also be noted by investors. 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. 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.

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 has moved 10.35% higher. Bandwidth is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Bandwidth currently has a Forward P/E ratio of 35.66. For comparison, its industry has an average Forward P/E of 12.21, which means Bandwidth is trading at a premium to the group.

Also, we should mention that BAND has a PEG ratio of 1.43. 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 Communication - Infrastructure was holding an average PEG ratio of 0.79 at yesterday's closing price.

The Communication - Infrastructure industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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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