Have you been paying attention to shares of CAI International ? Shares have been on the move with the stock up 0.3% over the past month. The stock hit a new 52-week high of $56.22 in the previous session. CAI International has gained 79.2% since the start of the year compared to the 10.6% move for the Zacks Transportation sector and the 30.1% return for the Zacks Transportation - Equipment and Leasing industry.
What's Driving the Outperformance?
The stock has an impressive 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 August 3, 2021, CAI International reported EPS of $2.04 versus consensus estimate of $1.74 while it beat the consensus revenue estimate by 3.34%.
For the current fiscal year, CAI International is expected to post earnings of $7.86 per share on $346.1 million in revenues. This represents a 55.53% change in EPS on a 1.39% change in revenues. For the next fiscal year, the company is expected to earn $8.19 per share on $383.64 million in revenues. This represents a year-over-year change of 4.19% and 10.85%, respectively.
Valuation Metrics
CAI International 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 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. 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.
CAI International has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 4.5X versus its peer group's average of 6.3X. 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, CAI International 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 CAI International meets the list of requirements. Thus, it seems as though CAI International shares could have potential in the weeks and months to come.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Have you been paying attention to shares of CAI International ? Shares have been on the move with the stock up 0.3% over the past month. The stock hit a new 52-week high of $56.22 in the previous session. CAI International has gained 79.2% since the start of the year compared to the 10.6% move for the Zacks Transportation sector and the 30.1% return for the Zacks Transportation - Equipment and Leasing industry.
What's Driving the Outperformance?
The stock has an impressive 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 August 3, 2021, CAI International reported EPS of $2.04 versus consensus estimate of $1.74 while it beat the consensus revenue estimate by 3.34%.
For the current fiscal year, CAI International is expected to post earnings of $7.86 per share on $346.1 million in revenues. This represents a 55.53% change in EPS on a 1.39% change in revenues. For the next fiscal year, the company is expected to earn $8.19 per share on $383.64 million in revenues. This represents a year-over-year change of 4.19% and 10.85%, respectively.
Valuation Metrics
CAI International 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 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. 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.
CAI International has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 4.5X versus its peer group's average of 6.3X. 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, CAI International 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 CAI International meets the list of requirements. Thus, it seems as though CAI International shares could have potential in the weeks and months to come.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>