DLH Holdings Corp. (DLHC) Dips More Than Broader Markets: What You Should Know

In the latest trading session, DLH Holdings Corp. (DLHC) closed at $17.57, marking a -1.35% move from the previous day. This change lagged the S&P 500’s daily loss of 0.54%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today’s trading, shares of the company had lost 12.57% over the past month. This has was narrower than the Business Services sector’s loss of 26.13% and lagged the S&P 500’s loss of 7.87% in that time.

Investors will be hoping for strength from DLH Holdings Corp. as it approaches its next earnings release, which is expected to be January 31, 2022. On that day, DLH Holdings Corp. is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 269.23%. Meanwhile, our latest consensus estimate is calling for revenue of $158 million, up 173.12% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $393.5 million, which would represent changes of +54.32% and +59.9%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DLH Holdings Corp.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DLH Holdings Corp. is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, DLH Holdings Corp. is holding a Forward P/E ratio of 14.25. Its industry sports an average Forward P/E of 11.98, so we one might conclude that DLH Holdings Corp. is trading at a premium comparatively.

The Staffing Firms industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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