Back to top

Image: Bigstock

Badger Meter (BMI) Advances But Underperforms Market: Key Facts

Read MoreHide Full Article

Badger Meter (BMI - Free Report) ended the recent trading session at $200.64, demonstrating a +0.5% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.1%.

The manufacturer of products that measure gas and water flow's stock has climbed by 8.64% in the past month, exceeding the Computer and Technology sector's gain of 8.26% and the S&P 500's gain of 4.03%.

Market participants will be closely following the financial results of Badger Meter in its upcoming release. It is anticipated that the company will report an EPS of $0.98, marking a 28.95% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $199.75 million, indicating a 13.58% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.89 per share and a revenue of $799.07 million, demonstrating changes of +23.89% and +13.57%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Badger Meter. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Badger Meter holds a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Badger Meter is presently trading at a Forward P/E ratio of 51.34. This represents a premium compared to its industry's average Forward P/E of 27.76.

Meanwhile, BMI's PEG ratio is currently 3.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Instruments - Control industry had an average PEG ratio of 2.48.

The Instruments - Control industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Badger Meter, Inc. (BMI) - free report >>

Published in