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StoneX Group Inc. (SNEX) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of StoneX Group Inc. (SNEX - Free Report) ? Shares have been on the move with the stock up 16.3% over the past month. The stock hit a new 52-week high of $105.58 in the previous session. StoneX Group Inc. has gained 41.6% since the start of the year compared to the 27% move for the Zacks Finance sector and the 23.5% return for the Zacks Financial - Miscellaneous 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 November 19, 2024, StoneX Group reported EPS of $2.34 versus consensus estimate of $2.05.
For the current fiscal year, StoneX Group is expected to post earnings of $8.04 per share on $3.39 billion in revenues. This represents a 1.01% change in EPS on a -1.31% change in revenues. For the next fiscal year, the company is expected to earn $8.12 per share on $3.28 billion in revenues. This represents a year-over-year change of 1% and -3.13%, respectively.
Valuation Metrics
StoneX Group 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.
StoneX Group 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 13X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.6X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 9.6X. 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, StoneX Group 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 StoneX Group fits the bill. Thus, it seems as though StoneX Group shares could have potential in the weeks and months to come.
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StoneX Group Inc. (SNEX) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of StoneX Group Inc. (SNEX - Free Report) ? Shares have been on the move with the stock up 16.3% over the past month. The stock hit a new 52-week high of $105.58 in the previous session. StoneX Group Inc. has gained 41.6% since the start of the year compared to the 27% move for the Zacks Finance sector and the 23.5% return for the Zacks Financial - Miscellaneous 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 November 19, 2024, StoneX Group reported EPS of $2.34 versus consensus estimate of $2.05.
For the current fiscal year, StoneX Group is expected to post earnings of $8.04 per share on $3.39 billion in revenues. This represents a 1.01% change in EPS on a -1.31% change in revenues. For the next fiscal year, the company is expected to earn $8.12 per share on $3.28 billion in revenues. This represents a year-over-year change of 1% and -3.13%, respectively.
Valuation Metrics
StoneX Group 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.
StoneX Group 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 13X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.6X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 9.6X. 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, StoneX Group 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 StoneX Group fits the bill. Thus, it seems as though StoneX Group shares could have potential in the weeks and months to come.