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EGain (EGAN) Stock Sinks As Market Gains: What You Should Know

eGain (EGAN) closed the most recent trading day at $7.99, moving -0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Coming into today, shares of the maker of customer engagement software had lost 0.86% in the past month. In that same time, the Computer and Technology sector gained 5.19%, while the S&P 500 gained 4.04%.

Investors will be hoping for strength from EGAN as it approaches its next earnings release. In that report, analysts expect EGAN to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $17.38 million, up 11.48% from the year-ago period.

It is also important to note the recent changes to analyst estimates for EGAN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 remained stagnant within the past month. EGAN is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, EGAN is currently trading at a Forward P/E ratio of 34.96. Its industry sports an average Forward P/E of 64.84, so we one might conclude that EGAN is trading at a discount comparatively.

Also, we should mention that EGAN has a PEG ratio of 1.17. 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 Internet - Software industry currently had an average PEG ratio of 3.1 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 65, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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