Alarm.com (ALRM - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and an A for Growth. I like that sort of divergence on the growth scores. I also see a 13% short interest position. So this stock fits well with where I have been having success lately.
Earnings History
I see a great history here with four consecutive beats of the Zacks Consensus Estimate. The most recent beat was 11 cents, or 44% ahead of the estimate. On average the ALRM has topped the Zacks Consensus Estimate by 27% over the last four reports.
We like to see a good earnings history like this because it tells us that management knows how to guide the analysts to a beatable number.
Estimate Revisions
I know this is a Zacks Rank #1 (Strong Buy) and that usually means that we get a lot of positive earnings estimate revisions, but that doesn’t seem to be the case here. I see a few moves higher, like the 2018 number moving from $1.21 to $1.28 but that really seems to be it.
I have come across this a lot lately as analysts, it seems, are not willing to stick their necks out on the line lately. The recent downturn in the market might have more than a few analysts gun shy about hiking numbers.
Valuation
I see a nearly 41x forward earnings multiple, and we get a number that high because the topline is showing strong growth of 24% on an annual basis. The Zacks System does not show a price to book multiple so we move on to the price to sales multiple of 6.8x. That is pretty high and part of the reason this is a low Value Style Score stock.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Alarm.com (ALRM - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and an A for Growth. I like that sort of divergence on the growth scores. I also see a 13% short interest position. So this stock fits well with where I have been having success lately.
Earnings History
I see a great history here with four consecutive beats of the Zacks Consensus Estimate. The most recent beat was 11 cents, or 44% ahead of the estimate. On average the ALRM has topped the Zacks Consensus Estimate by 27% over the last four reports.
We like to see a good earnings history like this because it tells us that management knows how to guide the analysts to a beatable number.
Estimate Revisions
I know this is a Zacks Rank #1 (Strong Buy) and that usually means that we get a lot of positive earnings estimate revisions, but that doesn’t seem to be the case here. I see a few moves higher, like the 2018 number moving from $1.21 to $1.28 but that really seems to be it.
I have come across this a lot lately as analysts, it seems, are not willing to stick their necks out on the line lately. The recent downturn in the market might have more than a few analysts gun shy about hiking numbers.
Valuation
I see a nearly 41x forward earnings multiple, and we get a number that high because the topline is showing strong growth of 24% on an annual basis. The Zacks System does not show a price to book multiple so we move on to the price to sales multiple of 6.8x. That is pretty high and part of the reason this is a low Value Style Score stock.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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