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CLEAR Secure, Inc. (YOU) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Clear Secure (YOU - Free Report) ? Shares have been on the move with the stock up 29.7% over the past month. The stock hit a new 52-week high of $26.96 in the previous session. Clear Secure has gained 29.6% since the start of the year compared to the 4.1% move for the Zacks Industrial Products sector and the 18.2% return for the Zacks Security and Safety 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 August 6, 2024, Clear Secure reported EPS of $0.34 versus consensus estimate of $0.26.
For the current fiscal year, Clear Secure is expected to post earnings of $1.29 per share on $759.48 million in revenues. This represents a 122.41% change in EPS on a 23.78% change in revenues. For the next fiscal year, the company is expected to earn $1.54 per share on $876.65 million in revenues. This represents a year-over-year change of 19.89% and 15.43%, respectively.
Valuation Metrics
Clear Secure 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.
Clear Secure has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.3X. On a trailing cash flow basis, the stock currently trades at 101.2X versus its peer group's average of 16.1X. 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, Clear Secure 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 Clear Secure passes the test. Thus, it seems as though Clear Secure shares could have potential in the weeks and months to come.
How Does YOU Stack Up to the Competition?
Shares of YOU 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 Allegion PLC (ALLE - Free Report) . ALLE has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Allegion PLC beat our consensus estimate by 10.73%, and for the current fiscal year, ALLE is expected to post earnings of $7.16 per share on revenue of $3.74 billion.
Shares of Allegion PLC have gained 1.6% over the past month, and currently trade at a forward P/E of 18.18X and a P/CF of 15.56X.
The Security and Safety Services industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for YOU and ALLE, even beyond their own solid fundamental situation.
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CLEAR Secure, Inc. (YOU) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Clear Secure (YOU - Free Report) ? Shares have been on the move with the stock up 29.7% over the past month. The stock hit a new 52-week high of $26.96 in the previous session. Clear Secure has gained 29.6% since the start of the year compared to the 4.1% move for the Zacks Industrial Products sector and the 18.2% return for the Zacks Security and Safety 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 August 6, 2024, Clear Secure reported EPS of $0.34 versus consensus estimate of $0.26.
For the current fiscal year, Clear Secure is expected to post earnings of $1.29 per share on $759.48 million in revenues. This represents a 122.41% change in EPS on a 23.78% change in revenues. For the next fiscal year, the company is expected to earn $1.54 per share on $876.65 million in revenues. This represents a year-over-year change of 19.89% and 15.43%, respectively.
Valuation Metrics
Clear Secure 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.
Clear Secure has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.3X. On a trailing cash flow basis, the stock currently trades at 101.2X versus its peer group's average of 16.1X. 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, Clear Secure 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 Clear Secure passes the test. Thus, it seems as though Clear Secure shares could have potential in the weeks and months to come.
How Does YOU Stack Up to the Competition?
Shares of YOU 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 Allegion PLC (ALLE - Free Report) . ALLE has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Allegion PLC beat our consensus estimate by 10.73%, and for the current fiscal year, ALLE is expected to post earnings of $7.16 per share on revenue of $3.74 billion.
Shares of Allegion PLC have gained 1.6% over the past month, and currently trade at a forward P/E of 18.18X and a P/CF of 15.56X.
The Security and Safety Services industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for YOU and ALLE, even beyond their own solid fundamental situation.