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ICU Medical, Inc. (ICUI) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of ICU Medical (ICUI - Free Report) ? Shares have been on the move with the stock up 27.6% over the past month. The stock hit a new 52-week high of $160 in the previous session. ICU Medical has gained 59.2% since the start of the year compared to the 11.1% move for the Zacks Medical sector and the 10.2% return for the Zacks Medical - Products 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 7, 2024, ICU Medical reported EPS of $1.56 versus consensus estimate of $0.98 while it beat the consensus revenue estimate by 7%.
For the current fiscal year, ICU Medical is expected to post earnings of $5.16 per share on $2.29 billion in revenues. This represents a -23.67% change in EPS on a 1.45% change in revenues. For the next fiscal year, the company is expected to earn $6.58 per share on $2.36 billion in revenues. This represents a year-over-year change of 27.52% and 2.79%, respectively.
Valuation Metrics
ICU Medical 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.
ICU Medical has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 24X. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 11.9X. 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, ICU Medical 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 ICU Medical meets the list of requirements. Thus, it seems as though ICU Medical shares could still be poised for more gains ahead.
How Does ICUI Stack Up to the Competition?
Shares of ICUI 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 Phibro Animal Health Corporation (PAHC - Free Report) . PAHC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Phibro Animal Health Corporation beat our consensus estimate by 6.90%, and for the current fiscal year, PAHC is expected to post earnings of $1.43 per share on revenue of $1.01 billion.
Shares of Phibro Animal Health Corporation have gained 1% over the past month, and currently trade at a forward P/E of 13.29X and a P/CF of 9.19X.
The Medical - Products industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ICUI and PAHC, even beyond their own solid fundamental situation.
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ICU Medical, Inc. (ICUI) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of ICU Medical (ICUI - Free Report) ? Shares have been on the move with the stock up 27.6% over the past month. The stock hit a new 52-week high of $160 in the previous session. ICU Medical has gained 59.2% since the start of the year compared to the 11.1% move for the Zacks Medical sector and the 10.2% return for the Zacks Medical - Products 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 7, 2024, ICU Medical reported EPS of $1.56 versus consensus estimate of $0.98 while it beat the consensus revenue estimate by 7%.
For the current fiscal year, ICU Medical is expected to post earnings of $5.16 per share on $2.29 billion in revenues. This represents a -23.67% change in EPS on a 1.45% change in revenues. For the next fiscal year, the company is expected to earn $6.58 per share on $2.36 billion in revenues. This represents a year-over-year change of 27.52% and 2.79%, respectively.
Valuation Metrics
ICU Medical 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.
ICU Medical has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 24X. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 11.9X. 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, ICU Medical 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 ICU Medical meets the list of requirements. Thus, it seems as though ICU Medical shares could still be poised for more gains ahead.
How Does ICUI Stack Up to the Competition?
Shares of ICUI 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 Phibro Animal Health Corporation (PAHC - Free Report) . PAHC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Phibro Animal Health Corporation beat our consensus estimate by 6.90%, and for the current fiscal year, PAHC is expected to post earnings of $1.43 per share on revenue of $1.01 billion.
Shares of Phibro Animal Health Corporation have gained 1% over the past month, and currently trade at a forward P/E of 13.29X and a P/CF of 9.19X.
The Medical - Products industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ICUI and PAHC, even beyond their own solid fundamental situation.