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

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Clearfield (CLFD - Free Report) closed the most recent trading day at $45.71, moving +1.96% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.

Prior to today's trading, shares of the maker of fiber optic management products had lost 26.23% over the past month. This has lagged the Computer and Technology sector's gain of 6.89% and the S&P 500's gain of 1.48% in that time.

Investors will be hoping for strength from Clearfield as it approaches its next earnings release. The company is expected to report EPS of $0.56, down 15.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $71.15 million, up 32.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.06 per share and revenue of $368.2 million, which would represent changes of +14.37% and +35.93%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Clearfield. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 7.37% lower. Clearfield is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Clearfield currently has a Forward P/E ratio of 11.03. For comparison, its industry has an average Forward P/E of 13.1, which means Clearfield is trading at a discount to the group.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.

To follow CLFD in the coming trading sessions, be sure to utilize Zacks.com.


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