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Why DXP Enterprises (DXPE) Outpaced the Stock Market Today

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The most recent trading session ended with DXP Enterprises (DXPE - Free Report) standing at $53.36, reflecting a +0.87% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.42% for the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

Shares of the industrial products supplier have depreciated by 3.82% over the course of the past month, underperforming the Industrial Products sector's gain of 6.17% and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of DXP Enterprises in its upcoming earnings disclosure.

Investors should also take note of any recent adjustments to analyst estimates for DXP Enterprises. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 12.66% higher within the past month. As of now, DXP Enterprises holds a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that DXP Enterprises has a Forward P/E ratio of 14.86 right now. For comparison, its industry has an average Forward P/E of 22.97, which means DXP Enterprises is trading at a discount to the group.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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