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Itron (ITRI) Shows Strong Earnings Potential Ahead of Report

Itron (ITRI) is set to report earnings with a projected EPS of $1.13, indicating positive growth. Revenue expectations also offer a 6.35% increase. Despite slight downgrades in estimates, the company's forward P/E suggests value compared to its peers, underlining investor confidence in its performance.

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AI Rating:   7

Itron (ITRI) has recently demonstrated a positive trajectory in its stock performance, closing at $103.41 with a +0.85% move from the previous trading session, outperforming the S&P 500 and Dow indices. Over the past month, Itron's stock has gained 5.64%, considerably higher than the gains witnessed in both the Computer and Technology sector and the S&P 500.

Looking forward, the upcoming earnings report is highly anticipated by investors, as Itron is expected to report an EPS of $1.13, which is a noteworthy increase of 15.31% from the prior-year quarter. Additionally, the revenue forecast stands at $596.37 million, showing a 6.35% rise compared to the same period last year.

For the entire fiscal year, the Zacks Consensus Estimates predict a total earnings of $4.59 per share and revenue of $2.41 billion, representing substantial changes of +36.61% and +10.76%, respectively, from the previous year. This suggests a strong growth outlook for Itron.

However, it's essential to note that there has been a slight decline of 0.42% in the Zacks Consensus EPS estimate over the last month, but Itron holds a Zacks Rank of #3 (Hold), indicating a stable outlook among analysts despite recent estimate revisions. This ranking is critical as it reflects the analysts' confidence concerning the company's ongoing performance.

From a valuation standpoint, Itron trades at a Forward P/E ratio of 22.35, which is relatively lower than the industry average Forward P/E of 25.48. Moreover, its PEG ratio stands at 0.86, which is significantly less than the average PEG ratio of 2.69 within the Electronics - Testing Equipment industry. This indicates that the stock may be undervalued relative to its growth potential, presenting an attractive investment opportunity.

Overall, Itron's favorable earnings projections, combined with its competitive valuation metrics, contribute to a positive outlook for the company's stock performance in the near term.

Stocks:  ITRI