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Bandwidth (BAND) Stock Sinks As Market Gains: What You Should Know
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Bandwidth (BAND - Free Report) closed at $15.16 in the latest trading session, marking a -0.13% move from the prior day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Prior to today's trading, shares of the enterprise software developer had lost 41.59% over the past month. This has lagged the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.
Wall Street will be looking for positivity from Bandwidth as it approaches its next earnings report date. On that day, Bandwidth is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 77.78%. Our most recent consensus estimate is calling for quarterly revenue of $132.99 million, up 1.24% from the year-ago period.
BAND's full-year Zacks Consensus Estimates are calling for earnings of $0.67 per share and revenue of $579.68 million. These results would represent year-over-year changes of +24.07% and +1.14%, respectively.
It is also important to note the recent changes to analyst estimates for Bandwidth. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 69.23% higher. Bandwidth currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Bandwidth currently has a Forward P/E ratio of 22.59. For comparison, its industry has an average Forward P/E of 10.77, which means Bandwidth is trading at a premium to the group.
Meanwhile, BAND's PEG ratio is currently 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Communication - Infrastructure stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Communication - Infrastructure industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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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Bandwidth (BAND) Stock Sinks As Market Gains: What You Should Know
Bandwidth (BAND - Free Report) closed at $15.16 in the latest trading session, marking a -0.13% move from the prior day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Prior to today's trading, shares of the enterprise software developer had lost 41.59% over the past month. This has lagged the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.
Wall Street will be looking for positivity from Bandwidth as it approaches its next earnings report date. On that day, Bandwidth is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 77.78%. Our most recent consensus estimate is calling for quarterly revenue of $132.99 million, up 1.24% from the year-ago period.
BAND's full-year Zacks Consensus Estimates are calling for earnings of $0.67 per share and revenue of $579.68 million. These results would represent year-over-year changes of +24.07% and +1.14%, respectively.
It is also important to note the recent changes to analyst estimates for Bandwidth. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 69.23% higher. Bandwidth currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Bandwidth currently has a Forward P/E ratio of 22.59. For comparison, its industry has an average Forward P/E of 10.77, which means Bandwidth is trading at a premium to the group.
Meanwhile, BAND's PEG ratio is currently 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Communication - Infrastructure stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Communication - Infrastructure industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.