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Grupo Aeroportuario del Centro Norte (OMAB) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Grupo Aeroportuario del Centro Norte (OMAB)? Shares have been on the move with the stock up 9.9% over the past month. The stock hit a new 52-week high of $62 in the previous session. Grupo Aeroportuario del Centro Norte has gained 13.8% since the start of the year compared to the -2.7% move for the Zacks Transportation sector and the -8.7% return for the Zacks Transportation - 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 February 22, 2022, Grupo Aeroportuario del Centro Norte reported EPS of $1.03 versus consensus estimate of $0.73.

For the current fiscal year, Grupo Aeroportuario del Centro Norte is expected to post earnings of $3.80 per share on $580.32 million in revenues. This represents a 32.4% change in EPS on a 34.98% change in revenues. For the next fiscal year, the company is expected to earn $4.29 per share on $616.65 million in revenues. This represents a year-over-year change of 12.89% and 6.26%, respectively.

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Valuation Metrics

Grupo Aeroportuario del Centro Norte 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. 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.

Grupo Aeroportuario del Centro Norte has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 16.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 15.8X versus its peer group's average of 7.3X. Additionally, the stock has a PEG ratio of 5.36. 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, Grupo Aeroportuario del Centro Norte currently has a Zacks Rank of #2 (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 Grupo Aeroportuario del Centro Norte meets the list of requirements. Thus, it seems as though Grupo Aeroportuario del Centro Norte shares could still be poised for more gains ahead.

How Does OMAB Stack Up to the Competition?

Shares of OMAB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Hertz Global Holdings, Inc. (HTZ). HTZ has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.

Earnings were strong last quarter. Hertz Global Holdings, Inc. beat our consensus estimate by 24.66%, and for the current fiscal year, HTZ is expected to post earnings of $3.66 per share on revenue of $9.83 billion.

Shares of Hertz Global Holdings, Inc. have gained 9.9% over the past month, and currently trade at a forward P/E of 5.77X and a P/CF of 3.63X.

The Transportation - Services industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for OMAB and HTZ, even beyond their own solid fundamental situation.


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) : Free Stock Analysis Report
 
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