DXP Enterprises (DXPE) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, DXP Enterprises (DXPE) closed at $133.13, marking a +1.09% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.47%.

Shares of the industrial products supplier witnessed a loss of 11.35% over the previous month, trailing the performance of the Industrial Products sector with its loss of 9.47%, and the S&P 500's loss of 1.88%.

The upcoming earnings release of DXP Enterprises will be of great interest to investors. The company's upcoming EPS is projected at $1.38, signifying a 9.52% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $530 million, showing a 11.21% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.2 per share and a revenue of $2.22 billion, representing changes of +14.39% and +10.1%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DXP Enterprises. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 17.2% higher. DXP Enterprises is holding a Zacks Rank of #1 (Strong Buy) right now.

With respect to valuation, DXP Enterprises is currently being traded at a Forward P/E ratio of 21.24. This indicates a discount in contrast to its industry's Forward P/E of 23.48.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 69, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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