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Rockwell Medical, Inc. (RMTI) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Rockwell Medical (RMTI - Free Report) ? Shares have been on the move with the stock up 83.1% over the past month. The stock hit a new 52-week high of $3.43 in the previous session. Rockwell Medical has gained 71.4% since the start of the year compared to the 11.8% move for the Zacks Medical sector and the 12.8% 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 8, 2024, Rockwell Medical reported EPS of $0.01 versus consensus estimate of $-0.04 while it beat the consensus revenue estimate by 12.26%.
For the current fiscal year, Rockwell Medical is expected to post earnings of -$0.03 per share on $98.8 million in revenues. This represents an 82.35% change in EPS on a 18.16% change in revenues. For the next fiscal year, the company is expected to earn $0.07 per share on $107.26 million in revenues. This represents a year-over-year change of 333.33% and 8.56%, respectively.
Valuation Metrics
Rockwell 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Rockwell Medical has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Rockwell Medical currently has a Zacks Rank of #1 (Strong 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 Rockwell Medical meets the list of requirements. Thus, it seems as though Rockwell Medical shares could have a bit more room to run in the near term.
How Does RMTI Stack Up to the Competition?
Shares of RMTI 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 ICU Medical, Inc. (ICUI - Free Report) . ICUI has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. ICU Medical, Inc. beat our consensus estimate by 59.18%, and for the current fiscal year, ICUI is expected to post earnings of $5.16 per share on revenue of $2.29 billion.
Shares of ICU Medical, Inc. have gained 31.9% over the past month, and currently trade at a forward P/E of 31.61X and a P/CF of 10.65X.
The Medical - Products industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RMTI and ICUI, even beyond their own solid fundamental situation.
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Rockwell Medical, Inc. (RMTI) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Rockwell Medical (RMTI - Free Report) ? Shares have been on the move with the stock up 83.1% over the past month. The stock hit a new 52-week high of $3.43 in the previous session. Rockwell Medical has gained 71.4% since the start of the year compared to the 11.8% move for the Zacks Medical sector and the 12.8% 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 8, 2024, Rockwell Medical reported EPS of $0.01 versus consensus estimate of $-0.04 while it beat the consensus revenue estimate by 12.26%.
For the current fiscal year, Rockwell Medical is expected to post earnings of -$0.03 per share on $98.8 million in revenues. This represents an 82.35% change in EPS on a 18.16% change in revenues. For the next fiscal year, the company is expected to earn $0.07 per share on $107.26 million in revenues. This represents a year-over-year change of 333.33% and 8.56%, respectively.
Valuation Metrics
Rockwell 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Rockwell Medical has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Rockwell Medical currently has a Zacks Rank of #1 (Strong 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 Rockwell Medical meets the list of requirements. Thus, it seems as though Rockwell Medical shares could have a bit more room to run in the near term.
How Does RMTI Stack Up to the Competition?
Shares of RMTI 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 ICU Medical, Inc. (ICUI - Free Report) . ICUI has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. ICU Medical, Inc. beat our consensus estimate by 59.18%, and for the current fiscal year, ICUI is expected to post earnings of $5.16 per share on revenue of $2.29 billion.
Shares of ICU Medical, Inc. have gained 31.9% over the past month, and currently trade at a forward P/E of 31.61X and a P/CF of 10.65X.
The Medical - Products industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RMTI and ICUI, even beyond their own solid fundamental situation.