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EGain (EGAN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, eGain (EGAN - Free Report) closed at $6.57, marking a -0.61% move from the previous day. This change lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.34%.

Heading into today, shares of the maker of customer engagement software had lost 16.44% over the past month, lagging the Computer and Technology sector's loss of 6.27% and the S&P 500's loss of 4.64% in that time.

EGAN will be looking to display strength as it nears its next earnings release, which is expected to be September 3, 2019. In that report, analysts expect EGAN to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.38 million, up 11.48% from the year-ago period.

Any recent changes to analyst estimates for EGAN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. EGAN currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, EGAN is holding a Forward P/E ratio of 28.74. For comparison, its industry has an average Forward P/E of 50.52, which means EGAN is trading at a discount to the group.

Investors should also note that EGAN has a PEG ratio of 0.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EGAN's industry had an average PEG ratio of 2.94 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% 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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