In the latest trading session, Avid Technology (AVID) closed at $7.18, marking a +1.27% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.57%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.03%.
Wall Street will be looking for positivity from AVID as it approaches its next earnings report date. The company is expected to report EPS of -$0.01, down 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $77.43 million, down 21.55% from the year-ago period.
AVID’s full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $360.41 million. These results would represent year-over-year changes of -31.37% and -12.48%, respectively.
Investors might also notice recent changes to analyst estimates for AVID. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVID is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, AVID is holding a Forward P/E ratio of 20.45. Its industry sports an average Forward P/E of 32.86, so we one might conclude that AVID is trading at a discount comparatively.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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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Avid Technology, Inc. (AVID) : Free Stock Analysis Report
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