We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vita Coco Company, Inc. (COCO) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Shares of Vita Coco Company, Inc. (COCO - Free Report) have been strong performers lately, with the stock up 24.6% over the past month. The stock hit a new 52-week high of $35.78 in the previous session. Vita Coco Company, Inc. has gained 34.9% since the start of the year compared to the 3.6% move for the Zacks Consumer Staples sector and the 2.1% return for the Zacks Beverages - Soft drinks 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 October 30, 2024, Vita Coco Company reported EPS of $0.32 versus consensus estimate of $0.27 while it missed the consensus revenue estimate by 2.09%.
For the current fiscal year, Vita Coco Company is expected to post earnings of $0.96 per share on $511.06 million in revenues. This represents a 29.73% change in EPS on a 3.53% change in revenues. For the next fiscal year, the company is expected to earn $1.14 per share on $568.95 million in revenues. This represents a year-over-year change of 18.58% and 11.33%, respectively.
Valuation Metrics
Vita Coco Company 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 is due for a pullback from this level.
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.
Vita Coco Company has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 35.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.8X. On a trailing cash flow basis, the stock currently trades at 44.6X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 2.51. 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, Vita Coco Company 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 Vita Coco Company fits the bill. Thus, it seems as though Vita Coco Company shares could have potential in the weeks and months to come.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Vita Coco Company, Inc. (COCO) Hit a 52 Week High, Can the Run Continue?
Shares of Vita Coco Company, Inc. (COCO - Free Report) have been strong performers lately, with the stock up 24.6% over the past month. The stock hit a new 52-week high of $35.78 in the previous session. Vita Coco Company, Inc. has gained 34.9% since the start of the year compared to the 3.6% move for the Zacks Consumer Staples sector and the 2.1% return for the Zacks Beverages - Soft drinks 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 October 30, 2024, Vita Coco Company reported EPS of $0.32 versus consensus estimate of $0.27 while it missed the consensus revenue estimate by 2.09%.
For the current fiscal year, Vita Coco Company is expected to post earnings of $0.96 per share on $511.06 million in revenues. This represents a 29.73% change in EPS on a 3.53% change in revenues. For the next fiscal year, the company is expected to earn $1.14 per share on $568.95 million in revenues. This represents a year-over-year change of 18.58% and 11.33%, respectively.
Valuation Metrics
Vita Coco Company 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 is due for a pullback from this level.
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.
Vita Coco Company has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 35.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.8X. On a trailing cash flow basis, the stock currently trades at 44.6X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 2.51. 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, Vita Coco Company 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 Vita Coco Company fits the bill. Thus, it seems as though Vita Coco Company shares could have potential in the weeks and months to come.