We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Asure Software Inc (ASUR) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Have you been paying attention to shares of Asure Software Inc (ASUR - Free Report) ? 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 $11.06 in the previous session. Asure Software Inc has gained 17% since the start of the year compared to the 14% move for the Zacks Computer and Technology sector and the 12.2% return for the Zacks Internet - Delivery Services 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 November 7, 2022, Asure Software Inc reported EPS of $-0.01 versus consensus estimate of $-0.03.
For the current fiscal year, Asure Software Inc is expected to post earnings of $0.28 per share on $90.22 million in revenues.
Valuation Metrics
While Asure Software Inc has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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.
Asure Software Inc has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 39.7X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 11.8X. Additionally, the stock has a PEG ratio of 1.73. 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, Asure Software Inc 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 Asure Software Inc fits the bill. Thus, it seems as though Asure Software Inc shares could have a bit more room to run in the near term.
How Does ASUR Stack Up to the Competition?
Shares of ASUR 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 Vipshop Holdings Limited (VIPS - Free Report) . VIPS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Vipshop Holdings Limited beat our consensus estimate by 33.33%, and for the current fiscal year, VIPS is expected to post earnings of $1.51 per share on revenue of $14.55 billion.
Shares of Vipshop Holdings Limited have gained 5.8% over the past month, and currently trade at a forward P/E of 10.55X and a P/CF of 9.48X.
The Internet - Delivery Services industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ASUR and VIPS, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Asure Software Inc (ASUR) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Asure Software Inc (ASUR - Free Report) ? 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 $11.06 in the previous session. Asure Software Inc has gained 17% since the start of the year compared to the 14% move for the Zacks Computer and Technology sector and the 12.2% return for the Zacks Internet - Delivery Services 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 November 7, 2022, Asure Software Inc reported EPS of $-0.01 versus consensus estimate of $-0.03.
For the current fiscal year, Asure Software Inc is expected to post earnings of $0.28 per share on $90.22 million in revenues.
Valuation Metrics
While Asure Software Inc has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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.
Asure Software Inc has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 39.7X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 11.8X. Additionally, the stock has a PEG ratio of 1.73. 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, Asure Software Inc 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 Asure Software Inc fits the bill. Thus, it seems as though Asure Software Inc shares could have a bit more room to run in the near term.
How Does ASUR Stack Up to the Competition?
Shares of ASUR 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 Vipshop Holdings Limited (VIPS - Free Report) . VIPS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Vipshop Holdings Limited beat our consensus estimate by 33.33%, and for the current fiscal year, VIPS is expected to post earnings of $1.51 per share on revenue of $14.55 billion.
Shares of Vipshop Holdings Limited have gained 5.8% over the past month, and currently trade at a forward P/E of 10.55X and a P/CF of 9.48X.
The Internet - Delivery Services industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ASUR and VIPS, even beyond their own solid fundamental situation.