Avid Technology (AVID) closed at $7.24 in the latest trading session, marking a -0.41% move from the prior day. This move lagged the S&P 500’s daily gain of 0.5%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, added 0.95%.

Heading into today, shares of the audio and video technology company had lost 2.68% over the past month, lagging the Computer and Technology sector’s gain of 5.8% and the S&P 500’s gain of 1.89% in that time.

Wall Street will be looking for positivity from AVID as it approaches its next earnings report date. In that report, analysts expect AVID to post earnings of -$0.01 per share. This would mark a year-over-year decline of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $77.43 million, down 21.55% from the year-ago period.

AVID’s full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $360.41 million. These results would represent year-over-year changes of -31.37% and -12.48%, respectively.

Any recent changes to analyst estimates for AVID should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVID is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that AVID has a Forward P/E ratio of 20.97 right now. Its industry sports an average Forward P/E of 32.42, so we one might conclude that AVID is trading at a discount comparatively.

The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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