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Nice (NICE) Gains As Market Dips: What You Should Know

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Nice (NICE - Free Report) closed at $172.90 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.06%.

Prior to today's trading, shares of the software company had gained 10.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.55% and the S&P 500's gain of 1.26% in that time.

NICE will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2020. The company is expected to report EPS of $1.52, up 3.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $430.13 million, up 2.44% from the prior-year quarter.

Any recent changes to analyst estimates for NICE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. NICE is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NICE is holding a Forward P/E ratio of 29.85. This represents a discount compared to its industry's average Forward P/E of 57.68.

Meanwhile, NICE's PEG ratio is currently 2.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.69 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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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