Mitek Systems (MITK) Gains But Lags Market: What You Should Know

Mitek Systems (MITK) closed at $7.24 in the latest trading session, marking a +1.69% move from the prior day. The stock lagged the S&P 500's daily gain of 9.28%. At the same time, the Dow added 9.36%, and the tech-heavy Nasdaq gained 9.34%.

Coming into today, shares of the mobile imaging software company had lost 28.23% in the past month. In that same time, the Computer and Technology sector lost 26.09%, while the S&P 500 lost 26.56%.

Wall Street will be looking for positivity from MITK as it approaches its next earnings report date. In that report, analysts expect MITK to post earnings of $0.11 per share. This would mark year-over-year growth of 57.14%. Meanwhile, our latest consensus estimate is calling for revenue of $23.46 million, up 17.4% from the prior-year quarter.

MITK's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $100.05 million. These results would represent year-over-year changes of +21.43% and +18.28%, respectively.

Investors should also note any recent changes to analyst estimates for MITK. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. MITK is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, MITK is holding a Forward P/E ratio of 13.87. This represents a no noticeable deviation compared to its industry's average Forward P/E of 13.87.

It is also worth noting that MITK currently has a PEG ratio of 0.92. 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. The Computer - Optical Imaging was holding an average PEG ratio of 0.92 at yesterday's closing price.

The Computer - Optical Imaging industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.