iPower Inc. (IPW) closed at $1.38 in the latest trading session, showing no change from the previous day. While this was a flat performance, it’s worth noting that the broader market experienced a positive day. The S&P 500 rose by 1.61%, the Dow Jones Industrial Average gained 1.39%, and the tech-heavy Nasdaq Composite appreciated by 2.34%.
Despite the overall market strength, iPower Inc. shares have struggled in recent weeks, declining by 23.33% over the past month. This underperformance is greater than the Consumer Discretionary sector’s loss of 2.85% and the S&P 500’s loss of 2.88%.
However, market participants are keenly focused on the company’s upcoming earnings release. Analysts expect iPower Inc. to report earnings per share (EPS) of $0.01 for the quarter, representing a significant 110% increase from the same period last year. The consensus estimate for quarterly revenue stands at $21.3 million, which is an 8.97% decline from the year-ago period.
Investors should also pay close attention to any recent adjustments in analyst estimates for iPower Inc. These revisions can often reflect emerging trends in the company’s short-term business performance. Positive revisions typically indicate that analysts are optimistic about the company’s ability to generate profits and deliver strong results. Research suggests that estimate revisions are closely correlated with near-term share price momentum.
To capitalize on this correlation, Zacks Investment Research has developed the Zacks Rank system, a proprietary model that incorporates these estimate changes into its stock ratings. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record of outperformance, with #1 stocks averaging an annual gain of +25% since 1988.
Over the past 30 days, the Zacks Consensus EPS estimate for iPower Inc. has remained unchanged. However, the company currently boasts a Zacks Rank of #1 (Strong Buy), signifying a favorable outlook for its future performance.
From a valuation standpoint, iPower Inc. is currently trading at a forward price-to-earnings (P/E) ratio of 23. This valuation represents a premium compared to the industry average forward P/E of 17.8. The Consumer Products – Discretionary industry, a part of the broader Consumer Discretionary sector, holds a Zacks Industry Rank of 100, placing it among the top 40% of all 250+ industries. The Zacks Industry Rank, which is calculated based on the average Zacks Rank of individual stocks within a group, serves as a measure of the strength of each industry. Research indicates that industries ranked in the top 50% consistently outperform those in the bottom half by a factor of 2 to 1.
