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Brady Corporation (BRC) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Brady (BRC - Free Report) ? Shares have been on the move with the stock up 2.7% over the past month. The stock hit a new 52-week high of $76.97 in the previous session. Brady has gained 29.4% since the start of the year compared to the 12.2% move for the Zacks Industrial Products sector and the 24.6% return for the Zacks Security and Safety Services 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 September 6, 2024, Brady reported EPS of $1.19 versus consensus estimate of $1.11.
Valuation Metrics
Brady 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. 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.
Brady has a Value Score of C. 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 16.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.9X. On a trailing cash flow basis, the stock currently trades at 15.4X versus its peer group's average of 16.4X. Additionally, the stock has a PEG ratio of 3.52. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Brady 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 Brady meets the list of requirements. Thus, it seems as though Brady shares could have potential in the weeks and months to come.
How Does BRC Stack Up to the Competition?
Shares of BRC 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 Allegion PLC (ALLE - Free Report) . ALLE has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Allegion PLC beat our consensus estimate by 10.73%, and for the current fiscal year, ALLE is expected to post earnings of $7.26 per share on revenue of $3.76 billion.
Shares of Allegion PLC have gained 5% over the past month, and currently trade at a forward P/E of 19.75X and a P/CF of 17.15X.
The Security and Safety Services industry may rank in the bottom 55% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BRC and ALLE, even beyond their own solid fundamental situation.
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Brady Corporation (BRC) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Brady (BRC - Free Report) ? Shares have been on the move with the stock up 2.7% over the past month. The stock hit a new 52-week high of $76.97 in the previous session. Brady has gained 29.4% since the start of the year compared to the 12.2% move for the Zacks Industrial Products sector and the 24.6% return for the Zacks Security and Safety Services 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 September 6, 2024, Brady reported EPS of $1.19 versus consensus estimate of $1.11.
Valuation Metrics
Brady 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. 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.
Brady has a Value Score of C. 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 16.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.9X. On a trailing cash flow basis, the stock currently trades at 15.4X versus its peer group's average of 16.4X. Additionally, the stock has a PEG ratio of 3.52. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Brady 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 Brady meets the list of requirements. Thus, it seems as though Brady shares could have potential in the weeks and months to come.
How Does BRC Stack Up to the Competition?
Shares of BRC 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 Allegion PLC (ALLE - Free Report) . ALLE has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Allegion PLC beat our consensus estimate by 10.73%, and for the current fiscal year, ALLE is expected to post earnings of $7.26 per share on revenue of $3.76 billion.
Shares of Allegion PLC have gained 5% over the past month, and currently trade at a forward P/E of 19.75X and a P/CF of 17.15X.
The Security and Safety Services industry may rank in the bottom 55% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BRC and ALLE, even beyond their own solid fundamental situation.