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Apogee Enterprises, Inc. (APOG) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Apogee Enterprises (APOG - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $69 in the previous session. Apogee Enterprises has gained 27.6% since the start of the year compared to the 8.7% move for the Zacks Industrial Products sector and the -11.5% return for the Zacks Glass Products 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 June 27, 2024, Apogee Enterprises reported EPS of $1.44 versus consensus estimate of $1.16.
Valuation Metrics
While Apogee Enterprises has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Apogee Enterprises has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 6.8X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 4.7X. 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, Apogee Enterprises 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 Apogee Enterprises fits the bill. Thus, it seems as though Apogee Enterprises shares could have potential in the weeks and months to come.
How Does APOG Stack Up to the Competition?
Shares of APOG 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 O-I Glass, Inc. (OI - Free Report) . OI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of F.
Earnings were strong last quarter. O-I Glass, Inc. beat our consensus estimate by 25%, and for the current fiscal year, OI is expected to post earnings of $1.71 per share on revenue of $7.06 billion.
Shares of O-I Glass, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 6.77X and a P/CF of 1.82X.
The Glass Products industry is in the top 5% of all the industries we have in our universe, so it looks like there are some nice tailwinds for APOG and OI, even beyond their own solid fundamental situation.
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Apogee Enterprises, Inc. (APOG) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Apogee Enterprises (APOG - Free Report) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $69 in the previous session. Apogee Enterprises has gained 27.6% since the start of the year compared to the 8.7% move for the Zacks Industrial Products sector and the -11.5% return for the Zacks Glass Products 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 June 27, 2024, Apogee Enterprises reported EPS of $1.44 versus consensus estimate of $1.16.
Valuation Metrics
While Apogee Enterprises has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Apogee Enterprises has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 6.8X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 4.7X. 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, Apogee Enterprises 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 Apogee Enterprises fits the bill. Thus, it seems as though Apogee Enterprises shares could have potential in the weeks and months to come.
How Does APOG Stack Up to the Competition?
Shares of APOG 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 O-I Glass, Inc. (OI - Free Report) . OI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of F.
Earnings were strong last quarter. O-I Glass, Inc. beat our consensus estimate by 25%, and for the current fiscal year, OI is expected to post earnings of $1.71 per share on revenue of $7.06 billion.
Shares of O-I Glass, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 6.77X and a P/CF of 1.82X.
The Glass Products industry is in the top 5% of all the industries we have in our universe, so it looks like there are some nice tailwinds for APOG and OI, even beyond their own solid fundamental situation.