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BioTelemetry (BEAT) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of BioTelemetry (BEAT - Free Report) ? Shares have been on the move with the stock up 14.8% over the past month. The stock hit a new 52-week high of $71.63 in the previous session. BioTelemetry has gained 136.5% since the start of the year compared to the 4.1% move for the Zacks Medical sector and the 32.7% return for the Zacks Medical 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 October 30, 2018, BioTelemetry reported EPS of $0.53 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 2.14%.
For the current fiscal year, BioTelemetry is expected to post earnings of $1.8 per share on $396.92 million in revenues. This represents an 85.57% change in EPS on a 38.41% change in revenues. For the next fiscal year, the company is expected to earn $1.72 per share on $436.98 million in revenues. This represents a year-over-year change of -4.26% and 10.09%, respectively.
Valuation Metrics
BioTelemetry 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.
BioTelemetry has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 37.8X versus its peer group's average of 18.5X. Additionally, the stock has a PEG ratio of 3.94. 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, BioTelemetry 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 BioTelemetry passes the test. Thus, it seems as though BioTelemetry shares could have a bit more room to run in the near term.
How Does BioTelemetry Stack Up to the Competition?
Shares of BioTelemetry have been moving higher, 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 looking good, including Medpace Holdings (MEDP - Free Report) , PRA Health Sciences , and Humana (HUM - Free Report) , 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 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BioTelemetry, even beyond its own solid fundamental situation.
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BioTelemetry (BEAT) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of BioTelemetry (BEAT - Free Report) ? Shares have been on the move with the stock up 14.8% over the past month. The stock hit a new 52-week high of $71.63 in the previous session. BioTelemetry has gained 136.5% since the start of the year compared to the 4.1% move for the Zacks Medical sector and the 32.7% return for the Zacks Medical 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 October 30, 2018, BioTelemetry reported EPS of $0.53 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 2.14%.
For the current fiscal year, BioTelemetry is expected to post earnings of $1.8 per share on $396.92 million in revenues. This represents an 85.57% change in EPS on a 38.41% change in revenues. For the next fiscal year, the company is expected to earn $1.72 per share on $436.98 million in revenues. This represents a year-over-year change of -4.26% and 10.09%, respectively.
Valuation Metrics
BioTelemetry 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.
BioTelemetry has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 37.8X versus its peer group's average of 18.5X. Additionally, the stock has a PEG ratio of 3.94. 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, BioTelemetry 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 BioTelemetry passes the test. Thus, it seems as though BioTelemetry shares could have a bit more room to run in the near term.
How Does BioTelemetry Stack Up to the Competition?
Shares of BioTelemetry have been moving higher, 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 looking good, including Medpace Holdings (MEDP - Free Report) , PRA Health Sciences , and Humana (HUM - Free Report) , 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 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BioTelemetry, even beyond its own solid fundamental situation.