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Matson, Inc. (MATX) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Matson (MATX - Free Report) ? Shares have been on the move with the stock up 2.5% over the past month. The stock hit a new 52-week high of $136.31 in the previous session. Matson has gained 19.9% since the start of the year compared to the -5.8% move for the Zacks Transportation sector and the -11.4% return for the Zacks Transportation - Services 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 August 1, 2024, Matson reported EPS of $3.31 versus consensus estimate of $3.05 while it missed the consensus revenue estimate by 1.66%.
For the current fiscal year, Matson is expected to post earnings of $10.36 per share on $3.42 billion in revenues. This represents a 24.64% change in EPS on a 10.45% change in revenues. For the next fiscal year, the company is expected to earn $8.91 per share on $3.26 billion in revenues. This represents a year-over-year change of -13.98% and -4.61%, respectively.
Valuation Metrics
Matson 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.
Matson has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.7X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 8.6X. 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, Matson currently has a Zacks Rank of #1 (Strong 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 Matson passes the test. Thus, it seems as though Matson shares could have a bit more room to run in the near term.
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Matson, Inc. (MATX) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Matson (MATX - Free Report) ? Shares have been on the move with the stock up 2.5% over the past month. The stock hit a new 52-week high of $136.31 in the previous session. Matson has gained 19.9% since the start of the year compared to the -5.8% move for the Zacks Transportation sector and the -11.4% return for the Zacks Transportation - Services 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 August 1, 2024, Matson reported EPS of $3.31 versus consensus estimate of $3.05 while it missed the consensus revenue estimate by 1.66%.
For the current fiscal year, Matson is expected to post earnings of $10.36 per share on $3.42 billion in revenues. This represents a 24.64% change in EPS on a 10.45% change in revenues. For the next fiscal year, the company is expected to earn $8.91 per share on $3.26 billion in revenues. This represents a year-over-year change of -13.98% and -4.61%, respectively.
Valuation Metrics
Matson 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.
Matson has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.7X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 8.6X. 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, Matson currently has a Zacks Rank of #1 (Strong 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 Matson passes the test. Thus, it seems as though Matson shares could have a bit more room to run in the near term.