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SharkNinja, Inc. (SN) Hits Fresh High: Is There Still Room to Run?
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Shares of SharkNinja, Inc. (SN - Free Report) have been strong performers lately, with the stock up 27.8% over the past month. The stock hit a new 52-week high of $92.11 in the previous session. SharkNinja, Inc. has gained 78% since the start of the year compared to the -1.8% move for the Zacks Consumer Discretionary sector and the 22.3% return for the Zacks Furniture 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 8, 2024, SharkNinja, Inc. reported EPS of $0.71 versus consensus estimate of $0.59.
For the current fiscal year, SharkNinja, Inc. is expected to post earnings of $4.22 per share on $5.18 billion in revenues. This represents a 31.06% change in EPS on a 21.88% change in revenues. For the next fiscal year, the company is expected to earn $4.81 per share on $5.68 billion in revenues. This represents a year-over-year change of 14.19% and 9.54%, respectively.
Valuation Metrics
SharkNinja, Inc. 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
SharkNinja, Inc. has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 22.9X versus its peer group's average of 7.4X. Additionally, the stock has a PEG ratio of 1.23. 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, SharkNinja, Inc. currently has a Zacks Rank of #2 (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 SharkNinja, Inc. meets the list of requirements. Thus, it seems as though SharkNinja, Inc. shares could have potential in the weeks and months to come.
How Does SN Stack Up to the Competition?
Shares of SN 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 La-Z-Boy Incorporated (LZB - Free Report) . LZB has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. La-Z-Boy Incorporated beat our consensus estimate by 39.71%, and for the current fiscal year, LZB is expected to post earnings of $3.13 per share on revenue of $2.09 billion.
Shares of La-Z-Boy Incorporated have gained 0.8% over the past month, and currently trade at a forward P/E of 13.41X and a P/CF of 7.05X.
The Furniture industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SN and LZB, even beyond their own solid fundamental situation.
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SharkNinja, Inc. (SN) Hits Fresh High: Is There Still Room to Run?
Shares of SharkNinja, Inc. (SN - Free Report) have been strong performers lately, with the stock up 27.8% over the past month. The stock hit a new 52-week high of $92.11 in the previous session. SharkNinja, Inc. has gained 78% since the start of the year compared to the -1.8% move for the Zacks Consumer Discretionary sector and the 22.3% return for the Zacks Furniture 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 8, 2024, SharkNinja, Inc. reported EPS of $0.71 versus consensus estimate of $0.59.
For the current fiscal year, SharkNinja, Inc. is expected to post earnings of $4.22 per share on $5.18 billion in revenues. This represents a 31.06% change in EPS on a 21.88% change in revenues. For the next fiscal year, the company is expected to earn $4.81 per share on $5.68 billion in revenues. This represents a year-over-year change of 14.19% and 9.54%, respectively.
Valuation Metrics
SharkNinja, Inc. 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
SharkNinja, Inc. has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 22.9X versus its peer group's average of 7.4X. Additionally, the stock has a PEG ratio of 1.23. 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, SharkNinja, Inc. currently has a Zacks Rank of #2 (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 SharkNinja, Inc. meets the list of requirements. Thus, it seems as though SharkNinja, Inc. shares could have potential in the weeks and months to come.
How Does SN Stack Up to the Competition?
Shares of SN 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 La-Z-Boy Incorporated (LZB - Free Report) . LZB has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. La-Z-Boy Incorporated beat our consensus estimate by 39.71%, and for the current fiscal year, LZB is expected to post earnings of $3.13 per share on revenue of $2.09 billion.
Shares of La-Z-Boy Incorporated have gained 0.8% over the past month, and currently trade at a forward P/E of 13.41X and a P/CF of 7.05X.
The Furniture industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SN and LZB, even beyond their own solid fundamental situation.