In the latest trading session, ScanSource (SCSC – Free Report) closed at $34.55, marking a +1.23% move from the previous day. This change outpaced the S&P 500’s 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the technology products distributor had gained 0.98% over the past month, outpacing the Industrial Products sector’s loss of 3.3% and the S&P 500’s gain of 0.39% in that time.
Wall Street will be looking for positivity from ScanSource as it approaches its next earnings report date. The company is expected to report EPS of $0.83, up 27.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $836.8 million, up 3.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $3.34 billion, which would represent changes of +18.98% and +5.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ScanSource. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ScanSource is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, ScanSource currently has a Forward P/E ratio of 10.47. Its industry sports an average Forward P/E of 21.35, so we one might conclude that ScanSource is trading at a discount comparatively.
The Industrial Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% 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.
To follow SCSC in the coming trading sessions, be sure to utilize Zacks.com.