K12 (LRN) closed the last trading day at $35.52, moving -0.95% from the previous trading session. That change lagged the S&P 500’s 0.29% daily gain. Meanwhile, the Dow Jones gained 0.18% and the Nasdaq, a technology-heavy index, added 0.07%.
Going into today, shares of the online education company had lost 16.22% over the past month, lagging the consumer discretionary sector’s 0.23% loss and of the 4.36% gain in the S&P 500 during this period.
Wall Street will be looking for K12 positivity closer to its next earnings report date. On that day, K12 is expected to post a profit of -$0.19 per share, which would represent a decline of 26.67% year over year. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $419.03 million, up 4.7% from the year-ago period.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $2.52 per share and revenue of $1.79 billion. These totals would mark changes of 0% and +6.32%, respectively, from last year.
Investors might also notice recent changes in analyst estimates for K12. These revisions help show the ever-changing nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has fallen 6.55% over the past month. K12 currently has a Zacks rank of #3 (Hold).
Valuation is also important, so investors should note that K12 has a Forward P/E ratio of 14.23 at this time. This represents a discount to the average PER of its sector of 16.25.
Meanwhile, LRN’s PEG ratio is currently 0.71. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. LRN’s industry had an average PEG ratio of 0.99 at yesterday’s close.
The schools industry is part of the consumer discretionary sector. This group has a Zacks Industry Rank of 187, which places it in the bottom 26% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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