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World Fuel Services (INT) Soars to 52-Week High, Time to Cash Out?
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Shares of World Fuel Services have been strong performers lately, with the stock up 12.9% over the past month. The stock hit a new 52-week high of $39.81 in the previous session. World Fuel Services has gained 85.2% since the start of the year compared to the 6.8% move for the Zacks Oils-Energy sector and the 2.1% return for the Zacks Oil and Gas - Refining and Marketing 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 July 25, 2019, World Fuel Services reported EPS of $0.58 versus consensus estimate of $0.54 while it missed the consensus revenue estimate by 1.62%.
For the current fiscal year, World Fuel Services is expected to post earnings of $2.34 per share on $38.02 billion in revenues. This represents a 10.9% change in EPS on a -4.34% change in revenues. For the next fiscal year, the company is expected to earn $2.82 per share on $43.51 billion in revenues. This represents a year-over-year change of 20.65% and 14.42%, respectively.
Valuation Metrics
World Fuel Services 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.
World Fuel Services has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.9X versus its peer group's average of 7.5X. Additionally, the stock has a PEG ratio of 3.39. 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, World Fuel Services 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 World Fuel Services fits the bill. Thus, it seems as though World Fuel Services shares could have a bit more room to run in the near term.
How Does World Fuel Services Stack Up to the Competition?
Shares of World Fuel Services 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 looking good, including Delek US Holdings (DK - Free Report) , Genesis Energy, L.P. (GEL - Free Report) , and Sunoco (SUN - 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 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for World Fuel Services, even beyond its own solid fundamental situation.
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World Fuel Services (INT) Soars to 52-Week High, Time to Cash Out?
Shares of World Fuel Services have been strong performers lately, with the stock up 12.9% over the past month. The stock hit a new 52-week high of $39.81 in the previous session. World Fuel Services has gained 85.2% since the start of the year compared to the 6.8% move for the Zacks Oils-Energy sector and the 2.1% return for the Zacks Oil and Gas - Refining and Marketing 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 July 25, 2019, World Fuel Services reported EPS of $0.58 versus consensus estimate of $0.54 while it missed the consensus revenue estimate by 1.62%.
For the current fiscal year, World Fuel Services is expected to post earnings of $2.34 per share on $38.02 billion in revenues. This represents a 10.9% change in EPS on a -4.34% change in revenues. For the next fiscal year, the company is expected to earn $2.82 per share on $43.51 billion in revenues. This represents a year-over-year change of 20.65% and 14.42%, respectively.
Valuation Metrics
World Fuel Services 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.
World Fuel Services has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.9X versus its peer group's average of 7.5X. Additionally, the stock has a PEG ratio of 3.39. 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, World Fuel Services 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 World Fuel Services fits the bill. Thus, it seems as though World Fuel Services shares could have a bit more room to run in the near term.
How Does World Fuel Services Stack Up to the Competition?
Shares of World Fuel Services 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 looking good, including Delek US Holdings (DK - Free Report) , Genesis Energy, L.P. (GEL - Free Report) , and Sunoco (SUN - 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 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for World Fuel Services, even beyond its own solid fundamental situation.