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NV5 (NVEE) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of NV5 Global (NVEE - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $92.5 in the previous session. NV5 Global has gained 66.1% since the start of the year compared to the 18.3% move for the Zacks Business Services sector and the 16% return for the Zacks Consulting Services 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 August 2, 2018, NV5 reported EPS of $0.69 versus consensus estimate of $0.62.
For the current fiscal year, NV5 is expected to post earnings of $2.37 per share on $402.1 million in revenues. This represents a -0.42% change in EPS on a 20.74% change in revenues. For the next fiscal year, the company is expected to earn $2.89 per share on $430.3 million in revenues. This represents a year-over-year change of 21.94% and 7.01%, respectively.
Valuation Metrics
NV5 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 they provide investors with an additional way to sort 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.
NV5 has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 38X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25X versus its peer group's average of 18.2X. Additionally, the stock has a PEG ratio of 1.9. 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, NV5 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 NV5 fits the bill. Thus, it seems as though NV5 shares could have a bit more room to run in the near term.
How Does NV5 Stack Up to the Competition?
Shares of NV5 have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including CRA International (CRAI - Free Report) , Robert Half International (RHI - Free Report) , and Total System Services , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NV5, even beyond its own solid fundamental situation.
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NV5 (NVEE) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of NV5 Global (NVEE - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $92.5 in the previous session. NV5 Global has gained 66.1% since the start of the year compared to the 18.3% move for the Zacks Business Services sector and the 16% return for the Zacks Consulting Services 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 August 2, 2018, NV5 reported EPS of $0.69 versus consensus estimate of $0.62.
For the current fiscal year, NV5 is expected to post earnings of $2.37 per share on $402.1 million in revenues. This represents a -0.42% change in EPS on a 20.74% change in revenues. For the next fiscal year, the company is expected to earn $2.89 per share on $430.3 million in revenues. This represents a year-over-year change of 21.94% and 7.01%, respectively.
Valuation Metrics
NV5 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 they provide investors with an additional way to sort 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.
NV5 has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 38X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 25X versus its peer group's average of 18.2X. Additionally, the stock has a PEG ratio of 1.9. 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, NV5 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 NV5 fits the bill. Thus, it seems as though NV5 shares could have a bit more room to run in the near term.
How Does NV5 Stack Up to the Competition?
Shares of NV5 have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including CRA International (CRAI - Free Report) , Robert Half International (RHI - Free Report) , and Total System Services , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NV5, even beyond its own solid fundamental situation.