Yahoo Finance Haemonetics Corporation (HAE) Hit a 52 Week High, Can the Run Continue?
Shares of Haemonetics (HAE) have been strong performers lately, with the stock up 13.4% over the past month. The stock hit a new 52-week high of $97.35 in the previous session. Haemonetics has gained 12.5% since the start of the year compared to the 3.8% move for the Zacks Medical sector and the 2.9% return for the Zacks Medical - Products 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 May 9, 2024, Haemonetics reported EPS of $0.9 versus consensus estimate of $0.88 while it beat the consensus revenue estimate by 5%.
For the current fiscal year, Haemonetics is expected to post earnings of $4.34 per share on $1.4 billion in revenues. This represents a 9.6% change in EPS on a 6.92% change in revenues. For the next fiscal year, the company is expected to earn $4.97 per share on $1.42 billion in revenues. This represents a year-over-year change of 14.59% and 1.4%, respectively.
Valuation Metrics
Haemonetics 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.
Haemonetics has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 22.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.8X. On a trailing cash flow basis, the stock currently trades at 16.1X versus its peer group's average of 11.5X. Additionally, the stock has a PEG ratio of 1.85. 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, Haemonetics currently has a Zacks Rank of #2 (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 Haemonetics passes the test. Thus, it seems as though Haemonetics shares could have potential in the weeks and months to come.
How Does HAE Stack Up to the Competition?
Shares of HAE 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 Phibro Animal Health Corporation (PAHC). PAHC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Phibro Animal Health Corporation beat our consensus estimate by 6.90%, and for the current fiscal year, PAHC is expected to post earnings of $1.22 per share on revenue of $993.83 million.
Shares of Phibro Animal Health Corporation have gained 37.1% over the past month, and currently trade at a forward P/E of 16.07X and a P/CF of 8.76X.
The Medical - Products industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for HAE and PAHC, even beyond their own solid fundamental situation.
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
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