DXP Enterprises (DXPE) Laps the Stock Market: Here's Why

In the latest close session, DXP Enterprises (DXPE) was up +1.36% at $151.65. The stock's change was more than the S&P 500's daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.9%.

The industrial products supplier's shares have seen an increase of 31.1% over the last month, surpassing the Industrial Products sector's gain of 11.11% and the S&P 500's loss of 0.16%.

The upcoming earnings release of DXP Enterprises will be of great interest to investors. The company's upcoming EPS is projected at $0.91, signifying a 34.06% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $498.31 million, reflecting a 5.82% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.03 per share and a revenue of $1.99 billion, indicating changes of +11.53% and +10.28%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for DXP Enterprises. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, DXP Enterprises holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that DXP Enterprises has a Forward P/E ratio of 28.28 right now. Its industry sports an average Forward P/E of 25.94, so one might conclude that DXP Enterprises is trading at a premium comparatively.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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