Why Clear Secure (YOU) Dipped More Than Broader Market Today

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Clear Secure (YOU) closed at $32.38 in the latest trading session, marking a -1.76% move from the prior day. This change lagged the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.04%.

Heading into today, shares of the airport security company had gained 11.81% over the past month, outpacing the Industrial Products sector's gain of 4.53% and the S&P 500's gain of 1.95% in that time.

The investment community will be closely monitoring the performance of Clear Secure in its forthcoming earnings report. The company is expected to report EPS of $0.33, up 57.14% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $194.14 million, indicating a 21.04% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.29 per share and revenue of $761.88 million. These totals would mark changes of +122.41% and +24.17%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Clear Secure. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Clear Secure possesses a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Clear Secure is currently being traded at a Forward P/E ratio of 25.62. This denotes a premium relative to the industry's average Forward P/E of 23.33.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.