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Oxford Industries, Inc. (OXM) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Oxford Industries (OXM - Free Report) ? Shares have been on the move with the stock up 25.5% over the past month. The stock hit a new 52-week high of $119.57 in the previous session. Oxford Industries has gained 26.8% since the start of the year compared to the 16.4% move for the Zacks Consumer Discretionary sector and the 10.9% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 7, 2022, Oxford Industries reported EPS of $1.46 versus consensus estimate of $1.2 while it beat the consensus revenue estimate by 3.18%.
For the current fiscal year, Oxford Industries is expected to post earnings of $11.85 per share on $1.41 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.79 per share on $1.6 billion in revenues. This represents a year-over-year change of 10.36% and 13.65%, respectively.
Valuation Metrics
Oxford Industries 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 these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Oxford Industries has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 8.5X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Oxford Industries 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 Oxford Industries passes the test. Thus, it seems as though Oxford Industries shares could still be poised for more gains ahead.
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Oxford Industries, Inc. (OXM) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Oxford Industries (OXM - Free Report) ? Shares have been on the move with the stock up 25.5% over the past month. The stock hit a new 52-week high of $119.57 in the previous session. Oxford Industries has gained 26.8% since the start of the year compared to the 16.4% move for the Zacks Consumer Discretionary sector and the 10.9% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 7, 2022, Oxford Industries reported EPS of $1.46 versus consensus estimate of $1.2 while it beat the consensus revenue estimate by 3.18%.
For the current fiscal year, Oxford Industries is expected to post earnings of $11.85 per share on $1.41 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.79 per share on $1.6 billion in revenues. This represents a year-over-year change of 10.36% and 13.65%, respectively.
Valuation Metrics
Oxford Industries 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 these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Oxford Industries has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 8.5X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Oxford Industries 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 Oxford Industries passes the test. Thus, it seems as though Oxford Industries shares could still be poised for more gains ahead.