DXP Enterprises (DXPE) closed at $170.66 in the latest trading session, marking a +1.6% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.49%. Meanwhile, the Dow experienced a drop of 0.05%, and the technology-dominated Nasdaq saw a decrease of 0.9%.
Shares of the industrial products supplier witnessed a gain of 23.74% over the previous month, beating the performance of the Industrial Products sector with its gain of 9.05%, and the S&P 500's gain of 12.8%.
The upcoming earnings release of DXP Enterprises will be of great interest to investors. The company is forecasted to report an EPS of $1.38, showcasing a 9.52% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $530 million, reflecting a 11.21% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.2 per share and revenue of $2.22 billion, indicating changes of +14.39% and +10.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for DXP Enterprises. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. DXP Enterprises is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, DXP Enterprises is holding a Forward P/E ratio of 27.09. This valuation marks a premium compared to its industry average Forward P/E of 24.08.
The Manufacturing - General Industrial industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).