Here's Why Nice (NICE) Gained But Lagged the Market Today

Nice (NICE) closed the most recent trading day at $110.06, moving +1.19% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.91%. On the other hand, the Dow registered a gain of 2.49%, and the technology-centric Nasdaq increased by 3.83%.

The software company's stock has dropped by 6.54% in the past month, exceeding the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%.

Analysts and investors alike will be keeping a close eye on the performance of Nice in its upcoming earnings disclosure. The company is expected to report EPS of $2.52, down 12.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $761.09 million, up 8.7% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.95 per share and a revenue of $3.18 billion, indicating changes of -10.98% and +8.09%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Nice. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.39% higher within the past month. Nice presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Nice currently has a Forward P/E ratio of 9.94. This indicates a discount in contrast to its industry's Forward P/E of 18.75.

Also, we should mention that NICE has a PEG ratio of 1.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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