OneSpan (OSPN) Beats Stock Market Upswing: What Investors Need to Know

In the latest close session, OneSpan (OSPN) was up +1.59% at $10.86. The stock’s performance was ahead of the S&P 500’s daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.54%.

Prior to today’s trading, shares of the internet security company had lost 1.84% was narrower than the Computer and Technology sector’s loss of 2.47% and the S&P 500’s loss of 3.31%.

The upcoming earnings release of OneSpan will be of great interest to investors. In that report, analysts expect OneSpan to post earnings of $0.36 per share. This would mark a year-over-year decline of 20%. Alongside, our most recent consensus estimate is anticipating revenue of $60.94 million, indicating a 3.83% downward movement from the same quarter last year.

OSPN’s full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $246.46 million. These results would represent year-over-year changes of -15.44% and +1.35%, respectively.

Any recent changes to analyst estimates for OneSpan should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, OneSpan is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, OneSpan is at present trading with a Forward P/E ratio of 8.51. This represents a discount compared to its industry average Forward P/E of 19.28.

One should further note that OSPN currently holds a PEG ratio of 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Internet – Software industry held an average PEG ratio of 1.07.

The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 39% of all 250+ industries.