In the latest trading session, Zix (ZIXI) closed at $8.42, marking a -0.59% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the e-mail encryption company had gained 35.52% over the past month, outpacing the Computer and Technology sector's gain of 5.62% and the S&P 500's gain of 4.28% in that time.
ZIXI will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. The company is expected to report EPS of $0.09, up 12.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.31 million, up 8.99% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ZIXI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZIXI is currently a Zacks Rank #2 (Buy).
In terms of valuation, ZIXI is currently trading at a Forward P/E ratio of 22.69. For comparison, its industry has an average Forward P/E of 44.56, which means ZIXI is trading at a discount to the group.
Meanwhile, ZIXI's PEG ratio is currently 1.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zix Corporation (ZIXI): Free Stock Analysis Report
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