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TechnipFMC plc (FTI) Hit a 52 Week High, Can the Run Continue?
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Shares of FMC Technologies (FTI - Free Report) have been strong performers lately, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $29.41 in the previous session. FMC Technologies has gained 45.7% since the start of the year compared to the 5% move for the Zacks Oils-Energy sector and the 3.3% return for the Zacks Oil and Gas - Field Services 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 July 25, 2024, FMC Technologies reported EPS of $0.43 versus consensus estimate of $0.31.
For the current fiscal year, FMC Technologies is expected to post earnings of $1.21 per share on $9 billion in revenues. This represents a 168.89% change in EPS on a 14.98% change in revenues. For the next fiscal year, the company is expected to earn $1.82 per share on $9.73 billion in revenues. This represents a year-over-year change of 50.62% and 8.1%, respectively.
Valuation Metrics
FMC Technologies 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 is due for a pullback from this level.
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.
FMC Technologies has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 24.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 22.1X versus its peer group's average of 7.5X. 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, FMC Technologies 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 FMC Technologies fits the bill. Thus, it seems as though FMC Technologies shares could have potential in the weeks and months to come.
How Does FTI Stack Up to the Competition?
Shares of FTI 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 Solaris Oilfield Infrastructure, Inc. . SOI has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Solaris Oilfield Infrastructure, Inc. beat our consensus estimate by 23.08%, and for the current fiscal year, SOI is expected to post earnings of $0.50 per share on revenue of $272.05 million.
Shares of Solaris Oilfield Infrastructure, Inc. have gained 51.7% over the past month, and currently trade at a forward P/E of 25.88X and a P/CF of 7.48X.
The Oil and Gas - Field Services industry may rank in the bottom 88% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FTI and SOI, even beyond their own solid fundamental situation.
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TechnipFMC plc (FTI) Hit a 52 Week High, Can the Run Continue?
Shares of FMC Technologies (FTI - Free Report) have been strong performers lately, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $29.41 in the previous session. FMC Technologies has gained 45.7% since the start of the year compared to the 5% move for the Zacks Oils-Energy sector and the 3.3% return for the Zacks Oil and Gas - Field Services 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 July 25, 2024, FMC Technologies reported EPS of $0.43 versus consensus estimate of $0.31.
For the current fiscal year, FMC Technologies is expected to post earnings of $1.21 per share on $9 billion in revenues. This represents a 168.89% change in EPS on a 14.98% change in revenues. For the next fiscal year, the company is expected to earn $1.82 per share on $9.73 billion in revenues. This represents a year-over-year change of 50.62% and 8.1%, respectively.
Valuation Metrics
FMC Technologies 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 is due for a pullback from this level.
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.
FMC Technologies has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 24.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 22.1X versus its peer group's average of 7.5X. 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, FMC Technologies 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 FMC Technologies fits the bill. Thus, it seems as though FMC Technologies shares could have potential in the weeks and months to come.
How Does FTI Stack Up to the Competition?
Shares of FTI 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 Solaris Oilfield Infrastructure, Inc. . SOI has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Solaris Oilfield Infrastructure, Inc. beat our consensus estimate by 23.08%, and for the current fiscal year, SOI is expected to post earnings of $0.50 per share on revenue of $272.05 million.
Shares of Solaris Oilfield Infrastructure, Inc. have gained 51.7% over the past month, and currently trade at a forward P/E of 25.88X and a P/CF of 7.48X.
The Oil and Gas - Field Services industry may rank in the bottom 88% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FTI and SOI, even beyond their own solid fundamental situation.