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Northwest Pipe Company (NWPX) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Northwest Pipe Co. (NWPX - Free Report) ? Shares have been on the move with the stock up 26.1% over the past month. The stock hit a new 52-week high of $55.43 in the previous session. Northwest Pipe Co. has gained 82.5% since the start of the year compared to the 20.4% move for the Zacks Industrial Products sector and the 49.9% return for the Zacks Metal Products - Procurement and Fabrication 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 October 30, 2024, Northwest Pipe Co. reported EPS of $1.02 versus consensus estimate of $0.85 while it beat the consensus revenue estimate by 2.68%.
For the current fiscal year, Northwest Pipe Co. is expected to post earnings of $3.31 per share on $491.59 million in revenues. This represents a 58.37% change in EPS on a 10.63% change in revenues. For the next fiscal year, the company is expected to earn $3.49 per share on $495.79 million in revenues. This represents a year-over-year change of 5.34% and 0.86%, respectively.
Valuation Metrics
Northwest Pipe Co. 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.
Northwest Pipe Co. 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 B.
In terms of its value breakdown, the stock currently trades at 16.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 3.33. 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, Northwest Pipe Co. currently has a Zacks Rank of #1 (Strong 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 Northwest Pipe Co. passes the test. Thus, it seems as though Northwest Pipe Co. shares could have potential in the weeks and months to come.
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Northwest Pipe Company (NWPX) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Northwest Pipe Co. (NWPX - Free Report) ? Shares have been on the move with the stock up 26.1% over the past month. The stock hit a new 52-week high of $55.43 in the previous session. Northwest Pipe Co. has gained 82.5% since the start of the year compared to the 20.4% move for the Zacks Industrial Products sector and the 49.9% return for the Zacks Metal Products - Procurement and Fabrication 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 October 30, 2024, Northwest Pipe Co. reported EPS of $1.02 versus consensus estimate of $0.85 while it beat the consensus revenue estimate by 2.68%.
For the current fiscal year, Northwest Pipe Co. is expected to post earnings of $3.31 per share on $491.59 million in revenues. This represents a 58.37% change in EPS on a 10.63% change in revenues. For the next fiscal year, the company is expected to earn $3.49 per share on $495.79 million in revenues. This represents a year-over-year change of 5.34% and 0.86%, respectively.
Valuation Metrics
Northwest Pipe Co. 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.
Northwest Pipe Co. 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 B.
In terms of its value breakdown, the stock currently trades at 16.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 3.33. 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, Northwest Pipe Co. currently has a Zacks Rank of #1 (Strong 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 Northwest Pipe Co. passes the test. Thus, it seems as though Northwest Pipe Co. shares could have potential in the weeks and months to come.