Kemet (KEM) Dips More Than Broader Markets: What You Should Know

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Kemet (KEM) closed at $17.38 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's 1.91% loss on the day. Meanwhile, the Dow lost 2.02%, and the Nasdaq, a tech-heavy index, lost 2.26%.

Coming into today, shares of the electronic capacitor maker had lost 12.53% in the past month. In that same time, the Computer and Technology sector lost 0.02%, while the S&P 500 lost 2.51%.

Wall Street will be looking for positivity from KEM as it approaches its next earnings report date. This is expected to be February 7, 2019. The company is expected to report EPS of $0.93, up 78.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $353.36 million, up 15.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $1.39 billion. These totals would mark changes of +90.86% and +15.73%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KEM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KEM is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, KEM is currently trading at a Forward P/E ratio of 5.31. This represents a discount compared to its industry's average Forward P/E of 13.33.

The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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