Have you been paying attention to shares of Blucora ? Shares have been on the move with the stock up 41.8% over the past month. BCOR hit a new 52-week high of $37.35 in the previous session. Blucora has gained 68.1% since the start of the year compared to the 9.6% move for the Business Services sector and the 18.4% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 9, 2018, Blucora reported EPS of $1.2 versus the Zacks Consensus Estimate of $0.98 while it beat the consensus revenue estimate by 4.7%.
For the current fiscal year, Blucora is expected to post earnings of $1.75 per share on $558.05 million in revenues. This represents a 19.86% change in EPS on a 9.52% change in revenues. For the next fiscal year, the company is expected to earn $2.08 per share on $597.91 million in revenues. This represents a year-over-year change of 18.86% and 7.14%, respectively.
Valuation Metrics
Blucora may be at a 52-week high right now, but what might the future hold for BCOR? 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.
Blucora has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 17.4X versus its peer group's average of 12X. Additionally, the stock has a PEG ratio of 1.06. 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, Blucora 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 and Style Scores of A or B, it looks as if Blucora passes the test. Thus, it seems as though BCOR shares could have a bit more room to run in the near term.
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Blucora (BCOR) Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Blucora ? Shares have been on the move with the stock up 41.8% over the past month. BCOR hit a new 52-week high of $37.35 in the previous session. Blucora has gained 68.1% since the start of the year compared to the 9.6% move for the Business Services sector and the 18.4% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 9, 2018, Blucora reported EPS of $1.2 versus the Zacks Consensus Estimate of $0.98 while it beat the consensus revenue estimate by 4.7%.
For the current fiscal year, Blucora is expected to post earnings of $1.75 per share on $558.05 million in revenues. This represents a 19.86% change in EPS on a 9.52% change in revenues. For the next fiscal year, the company is expected to earn $2.08 per share on $597.91 million in revenues. This represents a year-over-year change of 18.86% and 7.14%, respectively.
Valuation Metrics
Blucora may be at a 52-week high right now, but what might the future hold for BCOR? 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.
Blucora has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 17.4X versus its peer group's average of 12X. Additionally, the stock has a PEG ratio of 1.06. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Blucora, Inc. Price and Consensus
Blucora, Inc. Price and Consensus | Blucora, Inc. Quote
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, Blucora 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 and Style Scores of A or B, it looks as if Blucora passes the test. Thus, it seems as though BCOR shares could have a bit more room to run in the near term.