In the latest trading session, L.B. Foster (FSTR) closed at $17.31, marking a +0.17% move from the previous day. The stock lagged the S&P 500's daily gain of 0.36%.
Coming into today, shares of the railroad track manufacturer had lost 4.48% in the past month. In that same time, the Basic Materials sector gained 5.95%, while the S&P 500 gained 5.21%.
Investors will be hoping for strength from FSTR as it approaches its next earnings release. On that day, FSTR is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117.79 million, down 8.53% from the year-ago period.
FSTR's full-year Zacks Consensus Estimates are calling for earnings of $0.92 per share and revenue of $532.48 million. These results would represent year-over-year changes of -61.98% and +4.72%, respectively.
Investors might also notice recent changes to analyst estimates for FSTR. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FSTR currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that FSTR has a Forward P/E ratio of 18.77 right now. This represents a premium compared to its industry's average Forward P/E of 8.83.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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 FSTR in the coming trading sessions, be sure to utilize Zacks.com.
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