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Sapiens (SPNS) Stock Sinks As Market Gains: What You Should Know

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Sapiens (SPNS - Free Report) closed the most recent trading day at $25.30, moving -1.63% from the previous trading session. This change lagged the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.9%.

Heading into today, shares of the provider of software and services to the insurance industry had lost 1.76% over the past month, lagging the Computer and Technology sector's gain of 4.75% and the S&P 500's gain of 2.97% in that time.

SPNS will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2020. The company is expected to report EPS of $0.21, up 31.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $85.17 million, up 16.17% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SPNS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.18% higher within the past month. SPNS is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that SPNS has a Forward P/E ratio of 28.68 right now. Its industry sports an average Forward P/E of 33.58, so we one might conclude that SPNS is trading at a discount comparatively.

Also, we should mention that SPNS has a PEG ratio of 2.87. 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. The Computer - Software was holding an average PEG ratio of 2.35 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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