Have you been paying attention to shares of Belden (BDC - Free Report) ? Shares have been on the move with the stock up 7.7% over the past month. The stock hit a new 52-week high of $67.2 in the previous session. Belden has gained 56.5% since the start of the year compared to the 17.7% move for the Zacks Industrial Products sector and the 108.1% return for the Zacks Wire and Cable Products 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 November 3, 2021, Belden reported EPS of $1.31 versus consensus estimate of $1.17 while it beat the consensus revenue estimate by 5.12%.
For the current fiscal year, Belden is expected to post earnings of $4.74 per share on $2.39 billion in revenues. This represents a 72.73% change in EPS on a 28.48% change in revenues. For the next fiscal year, the company is expected to earn $5.12 per share on $2.48 billion in revenues. This represents a year-over-year change of 7.89% and 3.73%, respectively.
Valuation Metrics
Belden 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 these give investors a variety of ways to comb 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.
Belden 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 13.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.6X versus its peer group's average of 12.6X. 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, Belden 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 Belden meets the list of requirements. Thus, it seems as though Belden shares could have potential in the weeks and months to come.
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Have you been paying attention to shares of Belden (BDC - Free Report) ? Shares have been on the move with the stock up 7.7% over the past month. The stock hit a new 52-week high of $67.2 in the previous session. Belden has gained 56.5% since the start of the year compared to the 17.7% move for the Zacks Industrial Products sector and the 108.1% return for the Zacks Wire and Cable Products 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 November 3, 2021, Belden reported EPS of $1.31 versus consensus estimate of $1.17 while it beat the consensus revenue estimate by 5.12%.
For the current fiscal year, Belden is expected to post earnings of $4.74 per share on $2.39 billion in revenues. This represents a 72.73% change in EPS on a 28.48% change in revenues. For the next fiscal year, the company is expected to earn $5.12 per share on $2.48 billion in revenues. This represents a year-over-year change of 7.89% and 3.73%, respectively.
Valuation Metrics
Belden 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 these give investors a variety of ways to comb 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.
Belden 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 13.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.6X versus its peer group's average of 12.6X. 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, Belden 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 Belden meets the list of requirements. Thus, it seems as though Belden shares could have potential in the weeks and months to come.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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