Heading into today, shares of the company had gained 24.25% over the past month, outpacing the Business Services sector’s gain of 2.63% and the S&P 500’s gain of 1.06% in that time.
Investors will be hoping for strength from RKT as it approaches its next earnings release.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.18 per share and revenue of $12.85 billion, which would represent changes of -46.96% and -18.36%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for RKT. 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.
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.
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. The Zacks Consensus EPS estimate has moved 13.8% lower within the past month. RKT currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, RKT is holding a Forward P/E ratio of 9.46. This valuation marks a discount compared to its industry’s average Forward P/E of 34.72.
Investors should also note that RKT has a PEG ratio of 0.95 right now. 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. Technology Services stocks are, on average, holding a PEG ratio of 2.49 based on yesterday’s closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.