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BellRing Brands Inc. (BRBR) Soars to 52-Week High, Time to Cash Out?
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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 11.9% over the past month. The stock hit a new 52-week high of $74 in the previous session. BellRing Brands has gained 32.2% since the start of the year compared to the -1.7% move for the Zacks Medical sector and the 14.1% return for the Zacks Medical - Products 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 November 18, 2024, BellRing Brands reported EPS of $0.51 versus consensus estimate of $0.5.
For the current fiscal year, BellRing Brands is expected to post earnings of $2.12 per share on $2.29 billion in revenues. This represents a 9.84% change in EPS on a 14.52% change in revenues. For the next fiscal year, the company is expected to earn $2.42 per share on $2.44 billion in revenues. This represents a year-over-year change of 14.38% and 6.86%, 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 is due for a pullback from this level.
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. 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 B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 34.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.4X. On a trailing cash flow basis, the stock currently trades at 32.6X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 1.63. 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 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 BellRing Brands meets the list of requirements. Thus, it seems as though BellRing Brands shares could have potential in the weeks and months to come.
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 Haemonetics Corporation (HAE - Free Report) . HAE has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. Haemonetics Corporation beat our consensus estimate by 2.75%, and for the current fiscal year, HAE is expected to post earnings of $4.59 per share on revenue of $1.39 billion.
Shares of Haemonetics Corporation have gained 13.9% over the past month, and currently trade at a forward P/E of 18.5X and a P/CF of 14.02X.
The Medical - Products industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BRBR and HAE, even beyond their own solid fundamental situation.
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BellRing Brands Inc. (BRBR) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of BellRing Brands (BRBR - Free Report) ? Shares have been on the move with the stock up 11.9% over the past month. The stock hit a new 52-week high of $74 in the previous session. BellRing Brands has gained 32.2% since the start of the year compared to the -1.7% move for the Zacks Medical sector and the 14.1% return for the Zacks Medical - Products 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 November 18, 2024, BellRing Brands reported EPS of $0.51 versus consensus estimate of $0.5.
For the current fiscal year, BellRing Brands is expected to post earnings of $2.12 per share on $2.29 billion in revenues. This represents a 9.84% change in EPS on a 14.52% change in revenues. For the next fiscal year, the company is expected to earn $2.42 per share on $2.44 billion in revenues. This represents a year-over-year change of 14.38% and 6.86%, 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 is due for a pullback from this level.
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. 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 B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 34.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.4X. On a trailing cash flow basis, the stock currently trades at 32.6X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 1.63. 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 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 BellRing Brands meets the list of requirements. Thus, it seems as though BellRing Brands shares could have potential in the weeks and months to come.
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 Haemonetics Corporation (HAE - Free Report) . HAE has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. Haemonetics Corporation beat our consensus estimate by 2.75%, and for the current fiscal year, HAE is expected to post earnings of $4.59 per share on revenue of $1.39 billion.
Shares of Haemonetics Corporation have gained 13.9% over the past month, and currently trade at a forward P/E of 18.5X and a P/CF of 14.02X.
The Medical - Products industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BRBR and HAE, even beyond their own solid fundamental situation.