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VeriSign (VRSN) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, VeriSign (VRSN - Free Report) closed at $195.23, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a rise of 0.23%, and the technology-dominated Nasdaq saw an increase of 1.14%.

Heading into today, shares of the internet infrastructure services provider had lost 2.48% over the past month, lagging the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of VeriSign in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.84, marking an 8.24% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $388 million, indicating a 6.48% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for VeriSign. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, VeriSign boasts a Zacks Rank of #3 (Hold).

Investors should also note VeriSign's current valuation metrics, including its Forward P/E ratio of 24.97. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 24.97.

The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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