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Napco (NSSC) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Napco (NSSC - Free Report) closed at $26.16, marking a -1.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.43%.

Coming into today, shares of the security products and software company had lost 14.09% in the past month. In that same time, the Industrial Products sector lost 1.02%, while the S&P 500 gained 4.46%.

NSSC will be looking to display strength as it nears its next earnings release. On that day, NSSC is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $29.39 million, up 7.82% from the year-ago period.

It is also important to note the recent changes to analyst estimates for NSSC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 12.5% higher within the past month. NSSC is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that NSSC has a Forward P/E ratio of 31.17 right now. For comparison, its industry has an average Forward P/E of 21.56, which means NSSC is trading at a premium to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 110, putting it in the top 43% 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.

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


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