Progress Software (PRGS) closed at $52.69 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the business software maker had gained 2.78% over the past month. This has outpaced the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.83% in that time.
Progress Software will be looking to display strength as it nears its next earnings release. On that day, Progress Software is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 18.48%. Our most recent consensus estimate is calling for quarterly revenue of $161.62 million, up 12.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.10 per share and revenue of $613.06 million. These totals would mark changes of +5.94% and +10%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Progress Software. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Progress Software is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Progress Software has a Forward P/E ratio of 12.79 right now. For comparison, its industry has an average Forward P/E of 24.79, which means Progress Software is trading at a discount to the group.
It is also worth noting that PRGS currently has a PEG ratio of 6.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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 PRGS in the coming trading sessions, be sure to utilize Zacks.com.
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