Nice (NICE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Core Viewpoint - Nice (NICE) is experiencing a decline in stock price despite previous gains, with upcoming earnings expected to show positive growth in EPS and revenue compared to the previous year [1][2]. Group 1: Stock Performance - Nice's stock closed at $112.19, reflecting a -2.84% change from the previous day's closing price, underperforming against the S&P 500's daily loss of 0.06% [1]. - Prior to the recent trading session, Nice's shares had increased by 6.09%, outperforming the Computer and Technology sector's gain of 2.88% and the S&P 500's gain of 1.99% [1]. Group 2: Earnings Expectations - The upcoming earnings release is anticipated to report an EPS of $3.23, representing a 6.95% increase compared to the same quarter of the previous year [2]. - Revenue is expected to reach $778.66 million, indicating a 7.91% increase compared to the same quarter of the previous year [2]. - For the entire fiscal year, earnings are projected at $12.28 per share, reflecting a +10.43% change from the prior year, while revenue is expected to remain stable at $2.94 billion [3]. Group 3: Analyst Estimates and Ratings - Recent modifications to analyst estimates for Nice indicate changing business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4]. - The Zacks Rank system currently rates Nice as 5 (Strong Sell), with a recent downward shift of 0.21% in the consensus EPS estimate [6]. Group 4: Valuation Metrics - Nice has a Forward P/E ratio of 9.94, significantly lower than the industry average of 23.54, suggesting that Nice is trading at a discount [7]. - The PEG ratio for Nice stands at 1.39, compared to the industry average of 1.42, indicating a competitive valuation in terms of expected earnings growth [8]. Group 5: Industry Context - The Internet - Software industry, which includes Nice, ranks in the top 24% of all industries, with a Zacks Industry Rank of 57 [8]. - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for growth within the industry [9].