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Tech Data (TECD) Gains But Lags Market: What You Should Know

Zacks

Tech Data (TECD) closed at $100.39 in the latest trading session, marking a +0.33% move from the prior day. The stock lagged the S&P 500′s daily gain of 1.29%. At the same time, the Dow added 1.49%, and the tech-heavy Nasdaq gained 1.46%.

Coming into today, shares of the information technology products distributor had gained 10% in the past month. In that same time, the Retail-Wholesale sector gained 2.37%, while the S&P 500 gained 4.57%.

Wall Street will be looking for positivity from TECD as it approaches its next earnings report date. On that day, TECD is projected to report earnings of $4.08 per share, which would represent year-over-year growth of 16.57%. Our most recent consensus estimate is calling for quarterly revenue of $10.71 billion, down 3.49% from the year-ago period.

It is also important to note the recent changes to analyst estimates for TECD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.


Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. TECD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TECD is currently trading at a Forward P/E ratio of 8.7. This represents a discount compared to its industry’s average Forward P/E of 12.28.

It is also worth noting that TECD currently has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. TECD’s industry had an average PEG ratio of 1.49 as of yesterday’s close.

The Retail – Computer Hardware industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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.


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