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Johnson Outdoors (JOUT) Hit a 52-Week-High, Can the Run Continue?
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Have you been paying attention to shares of Johnson Outdoors (JOUT - Free Report) ? Shares have been on the move with the stock up 12.5% over the past month. JOUT hit a new 52-week-high of $84.63 in the previous session. Johnson Outdoors has gained 35.7% since the start of the year compared to the 7.7% move for the Consumer Discretionary sector and the 15.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on May 4, 2018, Johnson Outdoors reported EPS of $2.15 vs. the Zacks Consensus of $1.45 while it beat the consensus revenue estimate by 6.24%.
For the current fiscal year, Johnson Outdoors is expected to post earnings of $4.05 per share on $533.89 million in revenues. This represents a 31.49% change in EPS on an 8.83% change in revenues. For the next fiscal year, the company is expected to earn $4.49 per share on $550.82 million in revenues. This represents a year-over-year change of 10.86% and 3.17%, respectively.
Valuation Metrics
Johnson Outdoors may be at a 52-week-high right now, but what might the future hold for JOUT? 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.
Johnson Outdoors has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19X versus its peer group's average of 19.7X. 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, Johnson Outdoors currently has a Zacks Rank of #1 (Strong 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 Johnson Outdoors fits the bill. Thus, it seems as though JOUT shares could still be poised for more gains ahead.
The Zacks Leisure and Recreation Products industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for JOUT, even beyond its own solid fundamental situation.
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Johnson Outdoors (JOUT) Hit a 52-Week-High, Can the Run Continue?
Have you been paying attention to shares of Johnson Outdoors (JOUT - Free Report) ? Shares have been on the move with the stock up 12.5% over the past month. JOUT hit a new 52-week-high of $84.63 in the previous session. Johnson Outdoors has gained 35.7% since the start of the year compared to the 7.7% move for the Consumer Discretionary sector and the 15.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on May 4, 2018, Johnson Outdoors reported EPS of $2.15 vs. the Zacks Consensus of $1.45 while it beat the consensus revenue estimate by 6.24%.
For the current fiscal year, Johnson Outdoors is expected to post earnings of $4.05 per share on $533.89 million in revenues. This represents a 31.49% change in EPS on an 8.83% change in revenues. For the next fiscal year, the company is expected to earn $4.49 per share on $550.82 million in revenues. This represents a year-over-year change of 10.86% and 3.17%, respectively.
Valuation Metrics
Johnson Outdoors may be at a 52-week-high right now, but what might the future hold for JOUT? 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.
Johnson Outdoors has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19X versus its peer group's average of 19.7X. 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, Johnson Outdoors currently has a Zacks Rank of #1 (Strong 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 Johnson Outdoors fits the bill. Thus, it seems as though JOUT shares could still be poised for more gains ahead.
The Zacks Leisure and Recreation Products industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for JOUT, even beyond its own solid fundamental situation.