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Veracyte, Inc. (VCYT) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Veracyte (VCYT - Free Report) ? Shares have been on the move with the stock up 27.4% over the past month. The stock hit a new 52-week high of $32.86 in the previous session. Veracyte has gained 18.3% since the start of the year compared to the 8.2% move for the Zacks Medical sector and the 6.2% return for the Zacks Medical - Instruments 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 6, 2024, Veracyte reported EPS of $0.3 versus consensus estimate of $-0.03.
For the current fiscal year, Veracyte is expected to post earnings of $0 per share on $437.35 million in revenues. This represents a 100% change in EPS on a 21.13% change in revenues. For the next fiscal year, the company is expected to earn $0.18 per share on $460.69 million in revenues.
Valuation Metrics
Veracyte 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Veracyte has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, Veracyte currently has a Zacks Rank of #1 (Strong 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 Veracyte fits the bill. Thus, it seems as though Veracyte shares could have potential in the weeks and months to come.
How Does VCYT Stack Up to the Competition?
Shares of VCYT 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 TransMedics Group, Inc. (TMDX - Free Report) . TMDX has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. TransMedics Group, Inc. beat our consensus estimate by 66.67%, and for the current fiscal year, TMDX is expected to post earnings of $1.20 per share on revenue of $442.18 million.
Shares of TransMedics Group, Inc. have gained 6.7% over the past month, and currently trade at a forward P/E of 134.57X and a P/CF of 1138.07X.
The Medical - Instruments industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VCYT and TMDX, even beyond their own solid fundamental situation.
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Veracyte, Inc. (VCYT) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Veracyte (VCYT - Free Report) ? Shares have been on the move with the stock up 27.4% over the past month. The stock hit a new 52-week high of $32.86 in the previous session. Veracyte has gained 18.3% since the start of the year compared to the 8.2% move for the Zacks Medical sector and the 6.2% return for the Zacks Medical - Instruments 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 6, 2024, Veracyte reported EPS of $0.3 versus consensus estimate of $-0.03.
For the current fiscal year, Veracyte is expected to post earnings of $0 per share on $437.35 million in revenues. This represents a 100% change in EPS on a 21.13% change in revenues. For the next fiscal year, the company is expected to earn $0.18 per share on $460.69 million in revenues.
Valuation Metrics
Veracyte 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Veracyte has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, Veracyte currently has a Zacks Rank of #1 (Strong 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 Veracyte fits the bill. Thus, it seems as though Veracyte shares could have potential in the weeks and months to come.
How Does VCYT Stack Up to the Competition?
Shares of VCYT 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 TransMedics Group, Inc. (TMDX - Free Report) . TMDX has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. TransMedics Group, Inc. beat our consensus estimate by 66.67%, and for the current fiscal year, TMDX is expected to post earnings of $1.20 per share on revenue of $442.18 million.
Shares of TransMedics Group, Inc. have gained 6.7% over the past month, and currently trade at a forward P/E of 134.57X and a P/CF of 1138.07X.
The Medical - Instruments industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VCYT and TMDX, even beyond their own solid fundamental situation.