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Tactile Systems Technology, Inc. (TCMD) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Tactile Systems Technology (TCMD - Free Report) ? Shares have been on the move with the stock up 31% over the past month. The stock hit a new 52-week high of $19.55 in the previous session. Tactile Systems Technology has gained 32.3% since the start of the year compared to the 1% move for the Zacks Medical sector and the 5.3% return for the Zacks Medical - Instruments 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 4, 2024, Tactile Systems Technology reported EPS of $0.24 versus consensus estimate of $0.18.
For the current fiscal year, Tactile Systems Technology is expected to post earnings of $0.65 per share on $292.84 million in revenues. This represents a -48.03% change in EPS on a 6.71% change in revenues. For the next fiscal year, the company is expected to earn $0.86 per share on $322.36 million in revenues. This represents a year-over-year change of 31.44% and 10.08%, respectively.
Valuation Metrics
Tactile Systems Technology 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Tactile Systems Technology has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 28.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.8X. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 17.3X. 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, Tactile Systems Technology 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 Tactile Systems Technology passes the test. Thus, it seems as though Tactile Systems Technology shares could still be poised for more gains ahead.
How Does TCMD Stack Up to the Competition?
Shares of TCMD 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 Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) . FMS has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Fresenius Medical Care AG & Co. KGaA beat our consensus estimate by 7.14%, and for the current fiscal year, FMS is expected to post earnings of $1.87 per share on revenue of $21.02 billion.
Shares of Fresenius Medical Care AG & Co. KGaA have gained 8.2% over the past month, and currently trade at a forward P/E of 14.76X and a P/CF of 4.88X.
The Medical - Instruments industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TCMD and FMS, even beyond their own solid fundamental situation.
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Tactile Systems Technology, Inc. (TCMD) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Tactile Systems Technology (TCMD - Free Report) ? Shares have been on the move with the stock up 31% over the past month. The stock hit a new 52-week high of $19.55 in the previous session. Tactile Systems Technology has gained 32.3% since the start of the year compared to the 1% move for the Zacks Medical sector and the 5.3% return for the Zacks Medical - Instruments 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 4, 2024, Tactile Systems Technology reported EPS of $0.24 versus consensus estimate of $0.18.
For the current fiscal year, Tactile Systems Technology is expected to post earnings of $0.65 per share on $292.84 million in revenues. This represents a -48.03% change in EPS on a 6.71% change in revenues. For the next fiscal year, the company is expected to earn $0.86 per share on $322.36 million in revenues. This represents a year-over-year change of 31.44% and 10.08%, respectively.
Valuation Metrics
Tactile Systems Technology 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Tactile Systems Technology has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 28.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.8X. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 17.3X. 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, Tactile Systems Technology 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 Tactile Systems Technology passes the test. Thus, it seems as though Tactile Systems Technology shares could still be poised for more gains ahead.
How Does TCMD Stack Up to the Competition?
Shares of TCMD 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 Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) . FMS has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Fresenius Medical Care AG & Co. KGaA beat our consensus estimate by 7.14%, and for the current fiscal year, FMS is expected to post earnings of $1.87 per share on revenue of $21.02 billion.
Shares of Fresenius Medical Care AG & Co. KGaA have gained 8.2% over the past month, and currently trade at a forward P/E of 14.76X and a P/CF of 4.88X.
The Medical - Instruments industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TCMD and FMS, even beyond their own solid fundamental situation.