PGT Innovations is a Zacks Rank #2 (Buy) that sports a B for Value and a B for Growth. There are a few tailwinds for this stock as I see it, including trends in home improvement and inflation. Let’s explore more about this stock in this Bull Of The Day article.
Description
Grid Dynamics International Inc. engages in architecting and delivering digital transformation programs principally in the retail, technology and financial sectors. Grid Dynamics International Inc., formerly known as ChaSerg Technology Acquisition Corp, is based in Calif., United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PTGI, I see a great history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PTGI, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter had increased from $0.34 to $0.37.
Next quarter has moved higher, from $0.33 to $0.44.
The full fiscal year 2022 has moved from $1.41 to $1.67.
Next year has also seen a nice increase from $1.66 to $2.00.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Inflation And Home Improvement
Inflation has ravaged growth stocks. The stocks that have done well of late are the ones that have a physical product to sell of which they have pricing power over. Window and door companies instituted price increases several times last year and it looks like they will be able to do that again this year as well. That should help defend the EPS from inflation.
The other idea is that over the pandemic, home improvement saw a huge increase in wallet share. Now, with oil soaring and energy prices running rampant home owners are looking more and more for effeicncy. The impact doors and windows that PGT makes are perfect for this situation.
Valuation
I see a good valuation with some solid growth. The forward earnings multiple is 12.3x and that is low for a name that is posted growth of 37% in the most recent quarter and is expected to show mid 20%’s growth this year. The price to book of 2.3x is going to keep value investors interested in this name. The price to sales is just over 1x which is also good to see.
Chart
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Bull Of The Day: PGT Innovations (PGTI)
PGT Innovations is a Zacks Rank #2 (Buy) that sports a B for Value and a B for Growth. There are a few tailwinds for this stock as I see it, including trends in home improvement and inflation. Let’s explore more about this stock in this Bull Of The Day article.
Description
Grid Dynamics International Inc. engages in architecting and delivering digital transformation programs principally in the retail, technology and financial sectors. Grid Dynamics International Inc., formerly known as ChaSerg Technology Acquisition Corp, is based in Calif., United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PTGI, I see a great history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PTGI, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter had increased from $0.34 to $0.37.
Next quarter has moved higher, from $0.33 to $0.44.
The full fiscal year 2022 has moved from $1.41 to $1.67.
Next year has also seen a nice increase from $1.66 to $2.00.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Inflation And Home Improvement
Inflation has ravaged growth stocks. The stocks that have done well of late are the ones that have a physical product to sell of which they have pricing power over. Window and door companies instituted price increases several times last year and it looks like they will be able to do that again this year as well. That should help defend the EPS from inflation.
The other idea is that over the pandemic, home improvement saw a huge increase in wallet share. Now, with oil soaring and energy prices running rampant home owners are looking more and more for effeicncy. The impact doors and windows that PGT makes are perfect for this situation.
Valuation
I see a good valuation with some solid growth. The forward earnings multiple is 12.3x and that is low for a name that is posted growth of 37% in the most recent quarter and is expected to show mid 20%’s growth this year. The price to book of 2.3x is going to keep value investors interested in this name. The price to sales is just over 1x which is also good to see.
Chart
PGT, Inc. Price, Consensus and EPS Surprise
PGT, Inc. price-consensus-eps-surprise-chart | PGT, Inc. Quote