Instructure Holdings (INST) Gains But Lags Market: What You Should Know
In the latest trading session, Instructure Holdings (INST) closed at $24.82, marking a +1.26% move from the previous day. This move lagged the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Prior to today's trading, shares of the education technology company had lost 7.58% over the past month. This has lagged the Business Services sector's loss of 5.71% and the S&P 500's loss of 2.95% in that time.
Wall Street will be looking for positivity from Instructure Holdings as it approaches its next earnings report date. In that report, analysts expect Instructure Holdings to post earnings of $0.18 per share. This would mark a year-over-year decline of 35.71%. Our most recent consensus estimate is calling for quarterly revenue of $127.07 million, up 11.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.77 per share and revenue of $521.92 million, which would represent changes of 0% and +9.83%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Instructure Holdings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Instructure Holdings is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Instructure Holdings is currently trading at a Forward P/E ratio of 31.83. Its industry sports an average Forward P/E of 20.82, so we one might conclude that Instructure Holdings is trading at a premium comparatively.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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