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Immersion (IMMR) Stock Drops Despite Market Gains: Important Facts to Note

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Immersion (IMMR - Free Report) closed at $6.93 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's 1.07% gain on the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.

The touch-based technology company's stock has climbed by 1.45% in the past month, falling short of the Computer and Technology sector's gain of 4.83% and the S&P 500's gain of 2.93%.

The investment community will be paying close attention to the earnings performance of Immersion in its upcoming release. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 57.78% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.25 million, up 0.98% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Immersion. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Immersion is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Immersion is presently trading at a Forward P/E ratio of 9.46. This signifies a discount in comparison to the average Forward P/E of 24.84 for its industry.

The Computer - Peripheral Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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