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Why Nice (NICE) Dipped More Than Broader Market Today

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In the latest market close, Nice (NICE - Free Report) reached $177.55, with a -0.31% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.18%.

Heading into today, shares of the software company had gained 6.68% over the past month, outpacing the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76% in that time.

Investors will be eagerly watching for the performance of Nice in its upcoming earnings disclosure. In that report, analysts expect Nice to post earnings of $2.68 per share. This would mark year-over-year growth of 18.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $682.67 million, up 13.52% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.73 per share and a revenue of $2.73 billion, representing changes of +22.07% and +14.72%, respectively, from the prior year.

Any recent changes to analyst estimates for Nice should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Nice is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Nice is presently trading at a Forward P/E ratio of 16.6. This expresses a discount compared to the average Forward P/E of 32.36 of its industry.

One should further note that NICE currently holds a PEG ratio of 1.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.19 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

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.

To follow NICE in the coming trading sessions, be sure to utilize Zacks.com.


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