In the latest trading session, Donnelley Financial Solutions (DFIN) closed at $36.53, marking a +0.66% move from the previous day. This change outpaced the S&P 500’s 0.15% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the financial communications and data services provider had lost 22.56% over the past month, lagging the Computer and Technology sector’s loss of 14.1% and the S&P 500’s loss of 7.66% in that time.
Investors will be hoping for strength from Donnelley Financial Solutions as it approaches its next earnings release. In that report, analysts expect Donnelley Financial Solutions to post earnings of $1.26 per share. This would mark year-over-year growth of 250%. Our most recent consensus estimate is calling for quarterly revenue of $226 million, up 7.47% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Donnelley Financial Solutions. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Donnelley Financial Solutions is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Donnelley Financial Solutions is holding a Forward P/E ratio of 6.39. Its industry sports an average Forward P/E of 35.76, so we one might conclude that Donnelley Financial Solutions is trading at a discount comparatively.
The Internet – Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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