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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Grupo Aeroportuario del Pacifico (PAC - Free Report) ? Shares have been on the move with the stock up 17.3% over the past month. The stock hit a new 52-week high of $168.65 in the previous session. Grupo Aeroportuario del Pacifico has gained 21.5% since the start of the year compared to the -15.5% move for the Zacks Transportation sector and the -22.6% 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 October 21, 2022, Grupo Aeroportuario del Pacifico reported EPS of $2.6 versus consensus estimate of $2.17.
For the current fiscal year, Grupo Aeroportuario del Pacifico is expected to post earnings of $7.88 per share on $1.34 billion in revenues. This represents a 35.4% change in EPS on a 43.04% change in revenues. For the next fiscal year, the company is expected to earn $7.67 per share on $1.28 billion in revenues. This represents a year-over-year change of -2.6% and -4.77%, respectively.
Valuation Metrics
Grupo Aeroportuario del Pacifico 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 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.
Grupo Aeroportuario del Pacifico 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 21.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 21.4X versus its peer group's average of 6.3X. Additionally, the stock has a PEG ratio of 1.8. 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 Pacifico 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 Grupo Aeroportuario del Pacifico passes the test. Thus, it seems as though Grupo Aeroportuario del Pacifico shares could have potential in the weeks and months to come.
How Does PAC Stack Up to the Competition?
Shares of PAC 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 Universal Logistics Holdings, Inc. (ULH - Free Report) . ULH has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Universal Logistics Holdings, Inc. beat our consensus estimate by 36.30%, and for the current fiscal year, ULH is expected to post earnings of $5.50 per share on revenue of $2.02 billion.
Shares of Universal Logistics Holdings, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 5.66X and a P/CF of 6.3X.
The Transportation - Services industry may rank in the bottom 75% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for PAC and ULH, even beyond their own solid fundamental situation.
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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Grupo Aeroportuario del Pacifico (PAC - Free Report) ? Shares have been on the move with the stock up 17.3% over the past month. The stock hit a new 52-week high of $168.65 in the previous session. Grupo Aeroportuario del Pacifico has gained 21.5% since the start of the year compared to the -15.5% move for the Zacks Transportation sector and the -22.6% 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 October 21, 2022, Grupo Aeroportuario del Pacifico reported EPS of $2.6 versus consensus estimate of $2.17.
For the current fiscal year, Grupo Aeroportuario del Pacifico is expected to post earnings of $7.88 per share on $1.34 billion in revenues. This represents a 35.4% change in EPS on a 43.04% change in revenues. For the next fiscal year, the company is expected to earn $7.67 per share on $1.28 billion in revenues. This represents a year-over-year change of -2.6% and -4.77%, respectively.
Valuation Metrics
Grupo Aeroportuario del Pacifico 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 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.
Grupo Aeroportuario del Pacifico 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 21.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 21.4X versus its peer group's average of 6.3X. Additionally, the stock has a PEG ratio of 1.8. 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 Pacifico 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 Grupo Aeroportuario del Pacifico passes the test. Thus, it seems as though Grupo Aeroportuario del Pacifico shares could have potential in the weeks and months to come.
How Does PAC Stack Up to the Competition?
Shares of PAC 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 Universal Logistics Holdings, Inc. (ULH - Free Report) . ULH has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Universal Logistics Holdings, Inc. beat our consensus estimate by 36.30%, and for the current fiscal year, ULH is expected to post earnings of $5.50 per share on revenue of $2.02 billion.
Shares of Universal Logistics Holdings, Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 5.66X and a P/CF of 6.3X.
The Transportation - Services industry may rank in the bottom 75% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for PAC and ULH, even beyond their own solid fundamental situation.