In the recent trading session on Friday, shares of Encore Wire (NASDAQ:WIRE) experienced a lesser drop than the S&P 500, closing at $173.20, a decrease of 1.14% compared to the S&P 500's loss of 0.85%. Over the past month, the company's shares have shown resilience in the face of broader market declines, outperforming both the Industrial Products sector and the S&P 500 with a decrease of 1.26% compared to their losses of 4.87% and 3.02% respectively.
Encore Wire is set to present its earnings report on October 24, 2023. The company is expected to report earnings per share (EPS) of $4.66, marking a significant decrease of 53.26% from the same quarter last year. According to InvestingPro data, the company's EPS for the last twelve months was $31.49, indicating strong profitability.
Analyst estimate revisions for Encore Wire have remained steady over the past month, indicating optimism about near-term business trends. InvestingPro Tips highlight that 2 analysts have revised their earnings downwards for the upcoming period, which might be a cause for concern.
Currently, Encore Wire is trading at a forward price-to-earnings (P/E) ratio of 8.21, which indicates a discount compared to its industry's average of 9.11. But it's worth noting that according to InvestingPro data, the company's P/E ratio is 5.5, which is significantly lower than the industry average, suggesting that the stock might be undervalued.
InvestingPro Tips provide some interesting insights into Encore Wire's financial health. The company's management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, the company yields a high return on invested capital and holds more cash than debt on its balance sheet, indicating a strong financial position.
For those interested in dividends, Encore Wire has maintained dividend payments for 17 consecutive years, and its strong earnings should allow management to continue this trend. The company's dividend yield as of the last trading day was 0.05%, according to InvestingPro data.
In terms of performance, Encore Wire has demonstrated a high return over the last decade, and its return on assets for the last twelve months was 30.15%, as per InvestingPro data.
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