Strattec Security (STRT) closed at $20.86 in the latest trading session, marking a +0.05% move from the prior day. This change outpaced the S&P 500’s 0.62% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.94%.
Coming into today, shares of the maker of automotive locks and keys had gained 25.91% in the past month. In that same time, the Auto-Tires-Trucks sector gained 14.87%, while the S&P 500 gained 3.51%.
Investors will be hoping for strength from STRT as it approaches its next earnings release. On that day, STRT is projected to report earnings of -$1.42 per share, which would represent a year-over-year decline of 294.52%. Meanwhile, our latest consensus estimate is calling for revenue of $52.14 million, down 59.49% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for STRT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. The Zacks Consensus EPS estimate has moved 20.93% higher within the past month. STRT currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, STRT is holding a Forward P/E ratio of 13.36. This valuation marks a discount compared to its industry’s average Forward P/E of 28.47.
We can also see that STRT currently has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. STRT’s industry had an average PEG ratio of 2.25 as of yesterday’s close.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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 STRT in the coming trading sessions, be sure to utilize Zacks.com.
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