Badger Meter Surpasses Market Gains: Key Insights

Overview of Badger Meter's Recent Performance

Badger Meter (BMI) closed at $179.76 in the latest trading session, showing a positive movement of 1.1% compared to the previous day. This outperformed the S&P 500's daily gain of 0.47%, as well as the Dow's modest increase of 0.11%. The tech-heavy Nasdaq also saw an upward trend, rising by 0.94%.

Despite this recent gain, Badger Meter’s shares have declined by 4.83% over the last month. This underperformance is notable when compared to the Computer and Technology sector, which gained 3.88%, and the S&P 500, which rose by 2.32%.

Upcoming Earnings Release

Investors are closely watching the upcoming earnings release from Badger Meter. The company is expected to report earnings per share (EPS) of $1.11, reflecting a 2.78% increase from the same quarter last year. Revenue is forecasted to reach $229.36 million, marking a 10.04% growth compared to the corresponding quarter of the prior year.

Looking ahead to the full fiscal year, the Zacks Consensus Estimates predict earnings of $4.69 per share and revenue of $919.67 million. These figures represent increases of 10.87% and 11.27%, respectively, compared to the previous year.

Analyst Estimates and Market Outlook

Recent changes in analyst estimates for Badger Meter are worth noting. Such revisions often signal shifts in near-term business trends. Positive estimate revisions can be interpreted as an indication of optimism regarding the company's future performance.

The Zacks Rank system, designed to capitalize on these estimate changes, provides an actionable rating model. It ranges from #1 (Strong Buy) to #5 (Strong Sell). Stocks ranked #1 have historically delivered an average annual return of +25% since 1988. In the past 30 days, the consensus EPS projection for Badger Meter has decreased by 0.55%. Currently, the stock holds a Zacks Rank of #4 (Sell).

Valuation Metrics

In terms of valuation, Badger Meter currently has a Forward P/E ratio of 37.88, which is significantly higher than the industry average of 28.55. This suggests that the stock is trading at a premium relative to its peers.

Another key metric is the PEG ratio, which stands at 3.15 for Badger Meter. The PEG ratio adjusts the traditional P/E ratio by factoring in the company’s expected earnings growth rate. The Instruments - Control industry, which includes Badger Meter, has an average PEG ratio of 3.15.

Industry Position and Rankings

The Instruments - Control industry is part of the broader Computer and Technology sector. Badger Meter’s industry currently holds a Zacks Industry Rank of 28, placing it in the top 12% of all industries, which number over 250.

The Zacks Industry Rank evaluates the strength of specific industry groups by calculating the average Zacks Rank of the individual stocks within them. Research indicates that the top 50% of rated industries tend to outperform the bottom half by a factor of 2 to 1.

Monitoring Key Metrics

Investors should continue to monitor key metrics that impact stock performance. Tools like DISCOVER TRENDSto provide insights into these factors and more, helping investors make informed decisions in the coming trading sessions.