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Itron (ITRI) Surpasses Market Returns: Some Facts Worth Knowing

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Itron (ITRI - Free Report) closed at $103.41 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Coming into today, shares of the energy and water meter company had gained 5.64% in the past month. In that same time, the Computer and Technology sector gained 1.56%, while the S&P 500 gained 3.67%.

Investors will be eagerly watching for the performance of Itron in its upcoming earnings disclosure. The company is expected to report EPS of $1.13, up 15.31% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $596.37 million, showing a 6.35% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $2.41 billion, which would represent changes of +36.61% and +10.76%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Itron. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.42% fall in the Zacks Consensus EPS estimate. Itron presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Itron is currently exchanging hands at a Forward P/E ratio of 22.35. This represents a discount compared to its industry's average Forward P/E of 25.48.

It's also important to note that ITRI currently trades at a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Testing Equipment industry held an average PEG ratio of 2.69.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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