M-tron Industries, Inc. (MPTI) Exceeds Market Returns: Some Facts to Consider

M-tron Industries, Inc. (MPTI) closed at $64.38 in the latest trading session, marking a +2.39% move from the prior day. This move outpaced the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq added 2.18%.

Shares of the company witnessed a loss of 0.6% over the previous month, trailing the performance of the Construction sector with its gain of 7.04%, and outperforming the S&P 500's loss of 1.49%.

Analysts and investors alike will be keeping a close eye on the performance of M-tron Industries, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.64, down 12.33% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14 million, indicating a 9.29% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $54.05 million. These totals would mark changes of -10.94% and +10.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for M-tron Industries, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, M-tron Industries, Inc. holds a Zacks Rank of #3 (Hold).

In terms of valuation, M-tron Industries, Inc. is presently being traded at a Forward P/E ratio of 23.29. This signifies a discount in comparison to the average Forward P/E of 24.47 for its industry.

Also, we should mention that MPTI has a PEG ratio of 0.83. 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. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.92.

The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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M-tron Industries, Inc. (MPTI): Free Stock Analysis Report

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

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