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Rush Street Interactive, Inc. (RSI) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Rush Street Interactive, Inc. (RSI - Free Report) ? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $9.24 in the previous session. Rush Street Interactive, Inc. has gained 100.4% since the start of the year compared to the -1.5% move for the Zacks Consumer Discretionary sector and the -7.2% return for the Zacks Gaming industry.
What's Driving the Outperformance?
The stock has a great 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 May 1, 2024, Rush Street Interactive reported EPS of $0.03 versus consensus estimate of $-0.03 while it beat the consensus revenue estimate by 7.08%.
For the current fiscal year, Rush Street Interactive is expected to post earnings of $0.09 per share on $840.65 million in revenues. This represents a 164.29% change in EPS on a 21.63% change in revenues. For the next fiscal year, the company is expected to earn $0.49 per share on $955.2 million in revenues. This represents a year-over-year change of 438.89% and 13.63%, respectively.
Valuation Metrics
Rush Street Interactive 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. 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.
Rush Street Interactive has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 100X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 8.8X. 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, Rush Street Interactive currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Rush Street Interactive passes the test. Thus, it seems as though Rush Street Interactive shares could have potential in the weeks and months to come.
How Does RSI Stack Up to the Competition?
Shares of RSI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI - Free Report) . DDI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. DoubleDown Interactive Co., Ltd. Sponsored ADR beat our consensus estimate by 22%, and for the current fiscal year, DDI is expected to post earnings of $2.13 per share on revenue of $341.1 million.
Shares of DoubleDown Interactive Co., Ltd. Sponsored ADR have gained 10.9% over the past month, and currently trade at a forward P/E of 6.25X and a P/CF of 6.51X.
The Gaming industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RSI and DDI, even beyond their own solid fundamental situation.
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Rush Street Interactive, Inc. (RSI) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Rush Street Interactive, Inc. (RSI - Free Report) ? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $9.24 in the previous session. Rush Street Interactive, Inc. has gained 100.4% since the start of the year compared to the -1.5% move for the Zacks Consumer Discretionary sector and the -7.2% return for the Zacks Gaming industry.
What's Driving the Outperformance?
The stock has a great 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 May 1, 2024, Rush Street Interactive reported EPS of $0.03 versus consensus estimate of $-0.03 while it beat the consensus revenue estimate by 7.08%.
For the current fiscal year, Rush Street Interactive is expected to post earnings of $0.09 per share on $840.65 million in revenues. This represents a 164.29% change in EPS on a 21.63% change in revenues. For the next fiscal year, the company is expected to earn $0.49 per share on $955.2 million in revenues. This represents a year-over-year change of 438.89% and 13.63%, respectively.
Valuation Metrics
Rush Street Interactive 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. 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.
Rush Street Interactive has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 100X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 8.8X. 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, Rush Street Interactive currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Rush Street Interactive passes the test. Thus, it seems as though Rush Street Interactive shares could have potential in the weeks and months to come.
How Does RSI Stack Up to the Competition?
Shares of RSI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI - Free Report) . DDI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. DoubleDown Interactive Co., Ltd. Sponsored ADR beat our consensus estimate by 22%, and for the current fiscal year, DDI is expected to post earnings of $2.13 per share on revenue of $341.1 million.
Shares of DoubleDown Interactive Co., Ltd. Sponsored ADR have gained 10.9% over the past month, and currently trade at a forward P/E of 6.25X and a P/CF of 6.51X.
The Gaming industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RSI and DDI, even beyond their own solid fundamental situation.