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Napco (NSSC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Napco (NSSC - Free Report) closed at $25.09, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the security products and software company had lost 19.25% over the past month, lagging the Industrial Products sector's gain of 2.77% and the S&P 500's gain of 2.25% in that time.

Wall Street will be looking for positivity from NSSC as it approaches its next earnings report date. The company is expected to report EPS of $0.14, up 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.88 million, up 10.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.86 per share and revenue of $113.50 million, which would represent changes of +30.3% and +10.27%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NSSC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. NSSC is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note NSSC's current valuation metrics, including its Forward P/E ratio of 29.54. For comparison, its industry has an average Forward P/E of 20.37, 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 202, putting it in the bottom 22% 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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