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ScanSource (SCSC) closed at $36.41 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500’s daily loss of 0.24%.

Prior to today’s trading, shares of the technology products distributor had gained 4.62% over the past month. This has outpaced the Industrial Products sector’s loss of 6.15% and the S&P 500’s loss of 2.12% in that time.

Wall Street will be looking for positivity from SCSC as it approaches its next earnings report date. In that report, analysts expect SCSC to post earnings of $0.75 per share. This would mark year-over-year growth of 78.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $802.2 million, up 2.52% from the year-ago period.

SCSC’s full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $3.32 billion. These results would represent year-over-year changes of +17.88% and +4.65%, respectively.

Investors should also note any recent changes to analyst estimates for SCSC. 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.

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.

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. SCSC is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note SCSC’s current valuation metrics, including its Forward P/E ratio of 11.43. Its industry sports an average Forward P/E of 22.56, so we one might conclude that SCSC is trading at a discount comparatively.

The Industrial Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

To follow SCSC in the coming trading sessions, be sure to utilize Zacks.com.

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