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Calix (CALX) Hits 52-Week High, Can the Run Continue?
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Shares of Calix (CALX - Free Report) have been strong performers lately, with the stock up 18.9% over the past month. The stock hit a new 52-week high of $16.62 in the previous session. Calix has gained 107.5% since the start of the year compared to the 18.2% move for the Zacks Computer and Technology sector and the 29.6% 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 C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 69.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 392.5X versus its peer group's average of 22.8X. 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 #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 Calix passes the test. Thus, it seems as though Calix shares could have a bit more room to run in the near term.
How Does Calix Stack Up to the Competition?
Shares of Calix have been moving higher, 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) , Nitto Denko (NDEKY - Free Report) , and Skyworks Solutions (SWKS - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Calix. Still, the fundamentals for Calix are promising, and it still has potential despite being at a 52-week high.
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Calix (CALX) Hits 52-Week High, Can the Run Continue?
Shares of Calix (CALX - Free Report) have been strong performers lately, with the stock up 18.9% over the past month. The stock hit a new 52-week high of $16.62 in the previous session. Calix has gained 107.5% since the start of the year compared to the 18.2% move for the Zacks Computer and Technology sector and the 29.6% 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 C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 69.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 392.5X versus its peer group's average of 22.8X. 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 #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 Calix passes the test. Thus, it seems as though Calix shares could have a bit more room to run in the near term.
How Does Calix Stack Up to the Competition?
Shares of Calix have been moving higher, 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) , Nitto Denko (NDEKY - Free Report) , and Skyworks Solutions (SWKS - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Calix. Still, the fundamentals for Calix are promising, and it still has potential despite being at a 52-week high.