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Badger Meter (BMI) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Badger Meter (BMI - Free Report) closed at $211.79, marking a +1.3% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Shares of the manufacturer of products that measure gas and water flow witnessed a gain of 4.55% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.56% and the S&P 500's gain of 3.67%.

The upcoming earnings release of Badger Meter will be of great interest to investors. It is anticipated that the company will report an EPS of $1.01, marking a 14.77% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $208.48 million, up 11.97% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.09 per share and a revenue of $821.88 million, representing changes of +30.25% and +16.81%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Badger Meter. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% higher within the past month. Currently, Badger Meter is carrying a Zacks Rank of #2 (Buy).

Looking at valuation, Badger Meter is presently trading at a Forward P/E ratio of 51.15. This represents a premium compared to its industry's average Forward P/E of 25.15.

Meanwhile, BMI's PEG ratio is currently 2.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Instruments - Control was holding an average PEG ratio of 2.26 at yesterday's closing price.

The Instruments - Control industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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