This story originally appeared on Zacks
In the last trading session, Harmonic (HLIT) closed at $11.34, recording a move of 1.25% from the previous day. This change outpaced the S&P 500’s loss rate of 0.14% today. Meanwhile, the Dow Jones lost 0.45%, and the heavy Nasdaq lost 0.01%.
Ahead of today’s trading, shares of the video service provider are up 3.61% over the past month. This outpaced the computer and technology sector’s loss of 5.82% and the S&P 500’s loss of 0.13% in that time.
Harmonic will be looking to show strength as it nears its next earnings release. In this report, analysts expect Harmonic to report earnings of $0.14 per share. This would represent a year over year decline of 30%. Our latest consensus estimate calls for quarterly revenue of $151.93 million, an increase of 15.51% over the same period last year.
Investors should also note any recent changes to Harmonic’s analyst estimates. These reviews usually reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% annually since 1988. Over the past month, The Zacks Consensus EPS estimate remained constant. Harmonic has a Zacks rating of 3 (Hold) at the moment.
When researched, Harmonic currently has a forward P/E ratio of 21.96. For comparison, its industry has an average P/E forward of 19.08, which means Harmonic is trading at a premium to the group.
It is also worth noting that HLIT currently has a price-to-commission ratio of 1.46. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. The average price-earnings-growth (PEG) ratio for the telecom and components industry is currently 1.48 as of yesterday’s close.
The communications and components industry is part of the computer and technology sector. This group has a Zacks Industry Rating of 189, placing it in the lowest 26% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.
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Harmonic Inc. (HLIT): Free Stock Analysis Report
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