BYRN - Byrna Technologies Inc. is Attracting Investor Attention: Here is What You Should Know | Benzinga
Byrna Technologies Inc. (NASDAQ: BYRN) has been one of the most searched-for stocks on Zacks lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned -10.2% over the past month versus the Zacks S&P 500 composite's -3% change. The Zacks Technology Services industry, to which Byrna Technologies belongs, has lost 8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock ...