TTEC Holdings (TTEC) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The upward trend in estimate revisions for this customer engagement management company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For TTEC, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The earnings estimate of $0.25 per share for the current quarter represents a change of -7.41% from the number reported a year ago.
The Zacks Consensus Estimate for TTEC has increased 94.74% over the last 30 days, as two estimates have gone higher compared to no negative revisions.
The company is expected to earn $1.09 per share for the full year, which represents a change of +53.52% from the prior-year number.
The revisions trend for the current year also appears quite promising for TTEC, with two estimates moving higher over the past month compared to one negative revision. The consensus estimate has also received a boost over this time frame, increasing 18.08%.
Thanks to promising estimate revisions, TTEC currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
While strong estimate revisions for TTEC have attracted decent investments and pushed the stock 9.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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This article originally published on Zacks Investment Research (zacks.com).
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