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Nice (NICE) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Nice (NICE - Free Report) closed the most recent trading day at $177.88, moving +0.09% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow saw an upswing of 0.79%, while the tech-heavy Nasdaq appreciated by 0.28%.

The software company's shares have seen an increase of 9.2% over the last month, surpassing the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.

Analysts and investors alike will be keeping a close eye on the performance of Nice in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.68, showcasing a 18.06% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $682.67 million, indicating a 13.52% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.73 per share and revenue of $2.73 billion. These totals would mark changes of +22.07% and +14.72%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Nice. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nice is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Nice's current valuation metrics, including its Forward P/E ratio of 16.56. For comparison, its industry has an average Forward P/E of 31.87, which means Nice is trading at a discount to the group.

It is also worth noting that NICE currently has a PEG ratio of 1.14. 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 Internet - Software industry had an average PEG ratio of 2.14.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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