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Klaviyo, Inc. (KVYO) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Klaviyo, Inc. (KVYO - Free Report) ? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $39.77 in the previous session. Klaviyo, Inc. has gained 40.5% since the start of the year compared to the 17.1% move for the Zacks Business Services sector and the 36.7% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has a great 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, Klaviyo, Inc. reported EPS of $0.15 versus consensus estimate of $0.09 while it beat the consensus revenue estimate by 4.78%.
For the current fiscal year, Klaviyo, Inc. is expected to post earnings of $0.49 per share on $915.97 million in revenues. This represents a 36.11% change in EPS on a 31.21% change in revenues. For the next fiscal year, the company is expected to earn $0.58 per share on $1.15 billion in revenues. This represents a year-over-year change of 19.64% and 25.74%, respectively.
Valuation Metrics
Klaviyo, Inc. 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.
Klaviyo, Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 80.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 5X 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Klaviyo, Inc. 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 Klaviyo, Inc. passes the test. Thus, it seems as though Klaviyo, Inc. shares could have potential in the weeks and months to come.
How Does KVYO Stack Up to the Competition?
Shares of KVYO 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 Yext (YEXT - Free Report) . YEXT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Yext beat our consensus estimate by 150%, and for the current fiscal year, YEXT is expected to post earnings of $0.41 per share on revenue of $420.44 million.
Shares of Yext have gained 1.9% over the past month, and currently trade at a forward P/E of 16.91X and a P/CF of 38.92X.
The Technology Services industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KVYO and YEXT, even beyond their own solid fundamental situation.
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Klaviyo, Inc. (KVYO) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Klaviyo, Inc. (KVYO - Free Report) ? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $39.77 in the previous session. Klaviyo, Inc. has gained 40.5% since the start of the year compared to the 17.1% move for the Zacks Business Services sector and the 36.7% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has a great 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, Klaviyo, Inc. reported EPS of $0.15 versus consensus estimate of $0.09 while it beat the consensus revenue estimate by 4.78%.
For the current fiscal year, Klaviyo, Inc. is expected to post earnings of $0.49 per share on $915.97 million in revenues. This represents a 36.11% change in EPS on a 31.21% change in revenues. For the next fiscal year, the company is expected to earn $0.58 per share on $1.15 billion in revenues. This represents a year-over-year change of 19.64% and 25.74%, respectively.
Valuation Metrics
Klaviyo, Inc. 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.
Klaviyo, Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 80.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 5X 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Klaviyo, Inc. 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 Klaviyo, Inc. passes the test. Thus, it seems as though Klaviyo, Inc. shares could have potential in the weeks and months to come.
How Does KVYO Stack Up to the Competition?
Shares of KVYO 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 Yext (YEXT - Free Report) . YEXT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Yext beat our consensus estimate by 150%, and for the current fiscal year, YEXT is expected to post earnings of $0.41 per share on revenue of $420.44 million.
Shares of Yext have gained 1.9% over the past month, and currently trade at a forward P/E of 16.91X and a P/CF of 38.92X.
The Technology Services industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KVYO and YEXT, even beyond their own solid fundamental situation.