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Calix (CALX) Soars to 52-Week High, Time to Cash Out?
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Shares of Calix (CALX - Free Report) have been strong performers lately, with the stock up 1.8% over the past month. The stock hit a new 52-week high of $15 in the previous session. Calix has gained 80.8% since the start of the year compared to the 12.6% move for the Zacks Computer and Technology sector and the 23.5% return for the Zacks Communication - Infrastructure 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 April 28, 2020, Calix reported EPS of $-0.04 versus consensus estimate of $-0.07 while it beat the consensus revenue estimate by 4.24%.
For the current fiscal year, Calix is expected to post earnings of $0.24 per share on $460.05 million in revenues. This represents a 300% change in EPS on an 8.42% change in revenues. For the next fiscal year, the company is expected to earn $0.51 per share on $489.95 million in revenues. This represents a year-over-year change of 111.11% and 6.5%, respectively.
Valuation Metrics
Calix 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 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.
Calix 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 60.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 341.9X versus its peer group's average of 20.8X. 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, Calix currently has a Zacks Rank of #1 (Strong 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 Calix passes the test. Thus, it seems as though Calix shares could have potential in the weeks and months to come.
How Does Calix Stack Up to the Competition?
Shares of Calix 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 Turtle Beach (HEAR - Free Report) , Juniper Networks (JNPR - Free Report) , and Qorvo (QRVO - 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 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Calix, even beyond its own solid fundamental situation.
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Calix (CALX) Soars to 52-Week High, Time to Cash Out?
Shares of Calix (CALX - Free Report) have been strong performers lately, with the stock up 1.8% over the past month. The stock hit a new 52-week high of $15 in the previous session. Calix has gained 80.8% since the start of the year compared to the 12.6% move for the Zacks Computer and Technology sector and the 23.5% return for the Zacks Communication - Infrastructure 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 April 28, 2020, Calix reported EPS of $-0.04 versus consensus estimate of $-0.07 while it beat the consensus revenue estimate by 4.24%.
For the current fiscal year, Calix is expected to post earnings of $0.24 per share on $460.05 million in revenues. This represents a 300% change in EPS on an 8.42% change in revenues. For the next fiscal year, the company is expected to earn $0.51 per share on $489.95 million in revenues. This represents a year-over-year change of 111.11% and 6.5%, respectively.
Valuation Metrics
Calix 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 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.
Calix 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 60.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 341.9X versus its peer group's average of 20.8X. 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, Calix currently has a Zacks Rank of #1 (Strong 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 Calix passes the test. Thus, it seems as though Calix shares could have potential in the weeks and months to come.
How Does Calix Stack Up to the Competition?
Shares of Calix 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 Turtle Beach (HEAR - Free Report) , Juniper Networks (JNPR - Free Report) , and Qorvo (QRVO - 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 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Calix, even beyond its own solid fundamental situation.