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Itron (ITRI) Gains 74% in a Year: Will the Trend Continue?
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Itron (ITRI - Free Report) witnessed robust momentum in the past year. Shares of the company have surged 74% in the same time frame compared with 11.8% growth of the sub-industry.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for consumers.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company is benefiting from sales of water meter and communication module sales, particularly in the EMEA region. Also, strong operational execution and easing of supply-chain issues are major tailwinds.
Itron anticipates that growing consumer demand for electric cars and distributed energy resource management will propel customer bookings. According to Itron, bookings in 2024 should produce a book-to-bill ratio of at least 1:1. In the current year, investments from multiple government infrastructure investment programs are anticipated to boost bookings.
Increasing customer adoption of Itron's Grid Edge Intelligence solutions is a major tailwind. The solution will improve asset management, enhance consumer experience and reduce inefficiencies.
Frequent product launches bode well. In March, the company showcased Low Voltage Distributed Energy Resource Management Solution (LV DERMS) at the Energy Networks Conference in Adelaide, Australia. The cutting-edge technology aims to address the complexities of grid instability arising in the LV network due to energy transition.
The company expects 2027 revenues in the range of $2,600-$2,800 million and will register a CAGR of 5% to 7% from 2023-2027. The Networks and Outcomes segments are expected to register a CAGR of 4% to 6% and 12% to 15%, respectively.
Apart from solid fundamentals, rising operating expenses coupled with a leveraged balance sheet remain major headwinds. Uncertainty prevailing over global macroeconomic conditions, as well as volatile supply-chain dynamics, remain concerning.
A Look at Estimates
Itron’s revenues are suggested to improve year over year by 7.5% and 5.8% in 2024 and 2025, respectively.
The bottom line is anticipated to rise 7.4% and 18.5% on a year-over-year basis in 2024 and 2025, respectively.
The Zacks Consensus Estimate for 2024 and 2025 earnings per share (EPS) is pegged at $3.61 and $4.27, up 15.7% and 8.4%, respectively, in the past 60 days.
ITRI’s long-term earnings growth rate is pegged at 25%.
The Zacks Consensus Estimate for Synopsys’ 2024 EPS has decreased 0.7% in the past 60 days to $13.28. SNPS’s long-term earnings growth rate is 17.5%.
Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 56.1% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 213% in the past 60 days to 72 cents.
Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, delivering an average earnings surprise of 91.7%. Shares of IRDM have lost 56.1% in the past year.
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Itron (ITRI) Gains 74% in a Year: Will the Trend Continue?
Itron (ITRI - Free Report) witnessed robust momentum in the past year. Shares of the company have surged 74% in the same time frame compared with 11.8% growth of the sub-industry.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for consumers.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company is benefiting from sales of water meter and communication module sales, particularly in the EMEA region. Also, strong operational execution and easing of supply-chain issues are major tailwinds.
Itron anticipates that growing consumer demand for electric cars and distributed energy resource management will propel customer bookings. According to Itron, bookings in 2024 should produce a book-to-bill ratio of at least 1:1. In the current year, investments from multiple government infrastructure investment programs are anticipated to boost bookings.
Increasing customer adoption of Itron's Grid Edge Intelligence solutions is a major tailwind. The solution will improve asset management, enhance consumer experience and reduce inefficiencies.
Frequent product launches bode well. In March, the company showcased Low Voltage Distributed Energy Resource Management Solution (LV DERMS) at the Energy Networks Conference in Adelaide, Australia. The cutting-edge technology aims to address the complexities of grid instability arising in the LV network due to energy transition.
The company expects 2027 revenues in the range of $2,600-$2,800 million and will register a CAGR of 5% to 7% from 2023-2027. The Networks and Outcomes segments are expected to register a CAGR of 4% to 6% and 12% to 15%, respectively.
Apart from solid fundamentals, rising operating expenses coupled with a leveraged balance sheet remain major headwinds. Uncertainty prevailing over global macroeconomic conditions, as well as volatile supply-chain dynamics, remain concerning.
A Look at Estimates
Itron’s revenues are suggested to improve year over year by 7.5% and 5.8% in 2024 and 2025, respectively.
The bottom line is anticipated to rise 7.4% and 18.5% on a year-over-year basis in 2024 and 2025, respectively.
The Zacks Consensus Estimate for 2024 and 2025 earnings per share (EPS) is pegged at $3.61 and $4.27, up 15.7% and 8.4%, respectively, in the past 60 days.
ITRI’s long-term earnings growth rate is pegged at 25%.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Synopsys (SNPS - Free Report) , Pinterest (PINS - Free Report) and Iridium Communications (IRDM - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ 2024 EPS has decreased 0.7% in the past 60 days to $13.28. SNPS’s long-term earnings growth rate is 17.5%.
Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 56.1% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 0.7% in the past 60 days to $1.34.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 37.4%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 213% in the past 60 days to 72 cents.
Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, delivering an average earnings surprise of 91.7%. Shares of IRDM have lost 56.1% in the past year.