Canon (CAJ) wins as the market goes down: what you need to know
You are reading Entrepreneur United States, an international Entrepreneur Media franchise. This story originally appeared on Zack
In the last trading session, Canon (CAJ) closed at $ 22.46, marking a movement of + 1.26% from the previous day. The stock topped the S&P 500’s 0.85% daily loss. Elsewhere, the Dow Jones lost 0.17%, while the tech-savvy Nasdaq lost 0.05%.
As of today, shares of the office machinery company had lost 4.15% in the past month. At the same time, the IT and tech sector lost 0.5%, while the S&P 500 lost 0.97%.
Investors are hopeful that Canon will strengthen itself as the next publication of its results approaches. The company is expected to post EPS of $ 0.42, down 14.29% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 9.26 billion, down 2.45% from the previous year’s quarter.
Zacks’ consensus estimates for CAJ’s full year project earnings of $ 1.74 per share and revenue of $ 32.62 billion. These results would represent year-over-year variations of + 128.95% and + 8.48%, respectively.
Any recent changes in analysts’ estimates for Canon should also be noted by investors. These revisions generally reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks ranking system has a proven and externally verified track record of outperformance, with # 1 stocks returning an average of + 25% per year since. 1988. The Zacks Consensus EPS estimate has fallen 0.95% over the past month. Canon currently has a Zacks rank of # 3 (Hold).
Valuation is also important, so investors should note that Canon currently has a forward P / E ratio of 12.75. Its sector has an average forward P / E of 16.32, so one could conclude that Canon is trading at a comparatively discount.
Meanwhile, CAJ’s PEG ratio is currently 12.75. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Office automation and equipment stocks have, on average, a PEG ratio of 12.75 based on yesterday’s closing prices.
The office automation and equipment industry is part of the computer and technology sector. This group has an Industry Zacks Rank of 73, placing it in the top 29% of all 250+ industries.
Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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