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Israel Chemicals (ICL) Hits 52-Week High, Can the Run Continue?
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Shares of ICL Group (ICL - Free Report) have been strong performers lately, with the stock up 10.2% over the past month. The stock hit a new 52-week high of $9.18 in the previous session.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 4, 2021, Israel Chemicals reported EPS of $0.16 versus consensus estimate of $0.14.
For the current fiscal year, Israel Chemicals is expected to post earnings of $0.55 per share on $6.67 billion in revenues. This represents a 175% change in EPS on a 32.36% change in revenues. For the next fiscal year, the company is expected to earn $0.8 per share on $7.25 billion in revenues. This represents a year-over-year change of 45.45% and 8.65%, respectively.
Valuation Metrics
Israel Chemicals may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Israel Chemicals has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 15.4X. Additionally, the stock has a PEG ratio of 0.65. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Israel Chemicals currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Israel Chemicals meets the list of requirements. Thus, it seems as though Israel Chemicals shares could still be poised for more gains ahead.
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Israel Chemicals (ICL) Hits 52-Week High, Can the Run Continue?
Shares of ICL Group (ICL - Free Report) have been strong performers lately, with the stock up 10.2% over the past month. The stock hit a new 52-week high of $9.18 in the previous session.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 4, 2021, Israel Chemicals reported EPS of $0.16 versus consensus estimate of $0.14.
For the current fiscal year, Israel Chemicals is expected to post earnings of $0.55 per share on $6.67 billion in revenues. This represents a 175% change in EPS on a 32.36% change in revenues. For the next fiscal year, the company is expected to earn $0.8 per share on $7.25 billion in revenues. This represents a year-over-year change of 45.45% and 8.65%, respectively.
Valuation Metrics
Israel Chemicals may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Israel Chemicals has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 15.4X. Additionally, the stock has a PEG ratio of 0.65. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Israel Chemicals currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Israel Chemicals meets the list of requirements. Thus, it seems as though Israel Chemicals shares could still be poised for more gains ahead.