Shares of Carlisle Companies (CSL - Free Report) have been strong performers lately, with the stock up 5.6% over the past month. The stock hit a new 52-week high of $203.14 in the previous session. Carlisle Companies has gained 29.8% since the start of the year compared to the 22% move for the Zacks Conglomerates sector and the 22% return for the Zacks Diversified Operations 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 July 22, 2021, Carlisle reported EPS of $2.16 versus consensus estimate of $2.09.
For the current fiscal year, Carlisle is expected to post earnings of $9.15 per share on $4.63 billion in revenues. This represents a 55.78% change in EPS on a 9.06% change in revenues. For the next fiscal year, the company is expected to earn $11.48 per share on $4.98 billion in revenues. This represents a year-over-year change of 25.35% and 7.48%, respectively.
Valuation Metrics
Carlisle 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 has run ahead of itself.
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.
Carlisle has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 18.9X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 1.48. 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, Carlisle currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Carlisle meets the list of requirements. Thus, it seems as though Carlisle shares could have potential in the weeks and months to come.
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Shares of Carlisle Companies (CSL - Free Report) have been strong performers lately, with the stock up 5.6% over the past month. The stock hit a new 52-week high of $203.14 in the previous session. Carlisle Companies has gained 29.8% since the start of the year compared to the 22% move for the Zacks Conglomerates sector and the 22% return for the Zacks Diversified Operations 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 July 22, 2021, Carlisle reported EPS of $2.16 versus consensus estimate of $2.09.
For the current fiscal year, Carlisle is expected to post earnings of $9.15 per share on $4.63 billion in revenues. This represents a 55.78% change in EPS on a 9.06% change in revenues. For the next fiscal year, the company is expected to earn $11.48 per share on $4.98 billion in revenues. This represents a year-over-year change of 25.35% and 7.48%, respectively.
Valuation Metrics
Carlisle 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 has run ahead of itself.
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.
Carlisle has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 18.9X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 1.48. 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, Carlisle currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Carlisle meets the list of requirements. Thus, it seems as though Carlisle shares could have potential in the weeks and months to come.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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