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Cellebrite DI Ltd. (CLBT) Soars to 52-Week High, Time to Cash Out?

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Have you been paying attention to shares of Cellebrite DI Ltd. (CLBT - Free Report) ? Shares have been on the move with the stock up 19.1% over the past month. The stock hit a new 52-week high of $16.42 in the previous session. Cellebrite DI Ltd. has gained 72.8% since the start of the year compared to the 10% move for the Zacks Business Services sector and the 18.9% return for the Zacks Technology 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 15, 2024, Cellebrite DI Ltd. reported EPS of $0.1 versus consensus estimate of $0.08 while it beat the consensus revenue estimate by 4.11%.

Valuation Metrics

Cellebrite DI Ltd. 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 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. 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.

Cellebrite DI Ltd. has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 41.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.5X. On a trailing cash flow basis, the stock currently trades at 55.5X versus its peer group's average of 12.4X. Additionally, the stock has a PEG ratio of 1.92. 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, Cellebrite DI Ltd. 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 Cellebrite DI Ltd. meets the list of requirements. Thus, it seems as though Cellebrite DI Ltd. shares could have a bit more room to run in the near term.

How Does CLBT Stack Up to the Competition?

Shares of CLBT 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 Veralto Corporation (VLTO - Free Report) . VLTO has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of C.

Earnings were strong last quarter. Veralto Corporation beat our consensus estimate by 4.94%, and for the current fiscal year, VLTO is expected to post earnings of $3.45 per share on revenue of $5.17 billion.

Shares of Veralto Corporation have gained 10.5% over the past month, and currently trade at a forward P/E of 31.56X and a P/CF of 30.71X.

The Technology Services industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CLBT and VLTO, even beyond their own solid fundamental situation.


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