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AxoGen, Inc. (AXGN) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of AxoGen (AXGN - Free Report) ? Shares have been on the move with the stock up 28.6% over the past month. The stock hit a new 52-week high of $11.76 in the previous session. AxoGen has gained 71.7% since the start of the year compared to the 9.5% move for the Zacks Medical sector and the 7.6% 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 8, 2024, AxoGen reported EPS of $0.05 versus consensus estimate of $-0.05 while it beat the consensus revenue estimate by 10.74%.
For the current fiscal year, AxoGen is expected to post earnings of -$0.19 per share on $184.53 million in revenues. This represents a -11.76% change in EPS on a 16.05% change in revenues. For the next fiscal year, the company is expected to earn -$0.05 per share on $207.13 million in revenues. This represents a year-over-year change of 73.68% and 12.25%, respectively.
Valuation Metrics
AxoGen 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AxoGen has a Value Score of C. The stock's Growth and Momentum Scores are A and C, 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, AxoGen 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 AxoGen passes the test. Thus, it seems as though AxoGen shares could have a bit more room to run in the near term.
How Does AXGN Stack Up to the Competition?
Shares of AXGN 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 Veracyte, Inc. (VCYT - Free Report) . VCYT 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. Veracyte, Inc. beat our consensus estimate by 1,100%, and for the current fiscal year, VCYT is expected to post earnings of $0.13 per share on revenue of $437.02 million.
Shares of Veracyte, Inc. have gained 41.7% over the past month, and currently trade at a forward P/E of 262.8X and a P/CF of 353.94X.
The Medical - Instruments 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 AXGN and VCYT, even beyond their own solid fundamental situation.
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AxoGen, Inc. (AXGN) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of AxoGen (AXGN - Free Report) ? Shares have been on the move with the stock up 28.6% over the past month. The stock hit a new 52-week high of $11.76 in the previous session. AxoGen has gained 71.7% since the start of the year compared to the 9.5% move for the Zacks Medical sector and the 7.6% 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 8, 2024, AxoGen reported EPS of $0.05 versus consensus estimate of $-0.05 while it beat the consensus revenue estimate by 10.74%.
For the current fiscal year, AxoGen is expected to post earnings of -$0.19 per share on $184.53 million in revenues. This represents a -11.76% change in EPS on a 16.05% change in revenues. For the next fiscal year, the company is expected to earn -$0.05 per share on $207.13 million in revenues. This represents a year-over-year change of 73.68% and 12.25%, respectively.
Valuation Metrics
AxoGen 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AxoGen has a Value Score of C. The stock's Growth and Momentum Scores are A and C, 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, AxoGen 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 AxoGen passes the test. Thus, it seems as though AxoGen shares could have a bit more room to run in the near term.
How Does AXGN Stack Up to the Competition?
Shares of AXGN 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 Veracyte, Inc. (VCYT - Free Report) . VCYT 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. Veracyte, Inc. beat our consensus estimate by 1,100%, and for the current fiscal year, VCYT is expected to post earnings of $0.13 per share on revenue of $437.02 million.
Shares of Veracyte, Inc. have gained 41.7% over the past month, and currently trade at a forward P/E of 262.8X and a P/CF of 353.94X.
The Medical - Instruments 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 AXGN and VCYT, even beyond their own solid fundamental situation.