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BellRing Brands Inc. (BRBR) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of BellRing Brands (BRBR - Free Report) ? Shares have been on the move with the stock up 7.4% over the past month. The stock hit a new 52-week high of $67.53 in the previous session. BellRing Brands has gained 20.3% since the start of the year compared to the 3.8% move for the Zacks Medical sector and the 15.7% 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 5, 2024, BellRing Brands reported EPS of $0.54 versus consensus estimate of $0.44.
For the current fiscal year, BellRing Brands is expected to post earnings of $2.08 per share on $1.98 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.33 per share on $2.2 billion in revenues. This represents a year-over-year change of 9.34% and 11.16%, respectively.
Valuation Metrics
BellRing Brands 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
BellRing Brands has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 32.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 42.6X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 1.56. 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, BellRing Brands currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 BellRing Brands meets the list of requirements. Thus, it seems as though BellRing Brands shares could have a bit more room to run in the near term.
How Does BRBR Stack Up to the Competition?
Shares of BRBR 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 ResMed Inc. (RMD - Free Report) . RMD has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ResMed Inc. beat our consensus estimate by 8.37%, and for the current fiscal year, RMD is expected to post earnings of $9.22 per share on revenue of $5.07 billion.
Shares of ResMed Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 26.49X and a P/CF of 26.48X.
The Medical - Products industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BRBR and RMD, even beyond their own solid fundamental situation.
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BellRing Brands Inc. (BRBR) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of BellRing Brands (BRBR - Free Report) ? Shares have been on the move with the stock up 7.4% over the past month. The stock hit a new 52-week high of $67.53 in the previous session. BellRing Brands has gained 20.3% since the start of the year compared to the 3.8% move for the Zacks Medical sector and the 15.7% 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 5, 2024, BellRing Brands reported EPS of $0.54 versus consensus estimate of $0.44.
For the current fiscal year, BellRing Brands is expected to post earnings of $2.08 per share on $1.98 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.33 per share on $2.2 billion in revenues. This represents a year-over-year change of 9.34% and 11.16%, respectively.
Valuation Metrics
BellRing Brands 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
BellRing Brands has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 32.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 42.6X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 1.56. 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, BellRing Brands currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 BellRing Brands meets the list of requirements. Thus, it seems as though BellRing Brands shares could have a bit more room to run in the near term.
How Does BRBR Stack Up to the Competition?
Shares of BRBR 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 ResMed Inc. (RMD - Free Report) . RMD has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ResMed Inc. beat our consensus estimate by 8.37%, and for the current fiscal year, RMD is expected to post earnings of $9.22 per share on revenue of $5.07 billion.
Shares of ResMed Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 26.49X and a P/CF of 26.48X.
The Medical - Products industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BRBR and RMD, even beyond their own solid fundamental situation.