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Vishay (VPG) Hits 52-Week High, Can the Run Continue?
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Shares of Vishay Precision Group (VPG - Free Report) have been strong performers lately, with the stock up 11.5% over the past month. The stock hit a new 52-week high of $39.42 in the previous session. Vishay Precision Group has gained 24% since the start of the year compared to the 22.2% move for the Zacks Computer and Technology sector and the 0% return for the Zacks Electronics - Miscellaneous Components 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 August 10, 2021, Vishay reported EPS of $0.49 versus consensus estimate of $0.35.
For the current fiscal year, Vishay is expected to post earnings of $1.5 per share on $310.09 million in revenues. This represents a 14.39% change in EPS on a 14.93% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $335 million in revenues. This represents a year-over-year change of 27.15% and 8.03%, respectively.
Valuation Metrics
Vishay 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. 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.
Vishay has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 16.1X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 3.24. 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, Vishay 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 Vishay passes the test. Thus, it seems as though Vishay shares could have potential in the weeks and months to come.
How Does Vishay Stack Up to the Competition?
Shares of Vishay have been soaring, 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 TTM Technologies (TTMI - Free Report) , WESCO International (WCC - Free Report) , and Arrow Electronics (ARW - 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 Vishay. Still, the fundamentals for Vishay are promising, and it still has potential despite being at a 52-week high.
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Vishay (VPG) Hits 52-Week High, Can the Run Continue?
Shares of Vishay Precision Group (VPG - Free Report) have been strong performers lately, with the stock up 11.5% over the past month. The stock hit a new 52-week high of $39.42 in the previous session. Vishay Precision Group has gained 24% since the start of the year compared to the 22.2% move for the Zacks Computer and Technology sector and the 0% return for the Zacks Electronics - Miscellaneous Components 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 August 10, 2021, Vishay reported EPS of $0.49 versus consensus estimate of $0.35.
For the current fiscal year, Vishay is expected to post earnings of $1.5 per share on $310.09 million in revenues. This represents a 14.39% change in EPS on a 14.93% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $335 million in revenues. This represents a year-over-year change of 27.15% and 8.03%, respectively.
Valuation Metrics
Vishay 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. 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.
Vishay has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 16.1X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 3.24. 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, Vishay 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 Vishay passes the test. Thus, it seems as though Vishay shares could have potential in the weeks and months to come.
How Does Vishay Stack Up to the Competition?
Shares of Vishay have been soaring, 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 TTM Technologies (TTMI - Free Report) , WESCO International (WCC - Free Report) , and Arrow Electronics (ARW - 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 Vishay. Still, the fundamentals for Vishay are promising, and it still has potential despite being at a 52-week high.