Have you been paying attention to shares of JFrog Ltd. (FROG - Free Report) ? Shares have been on the move with the stock up 13.2% over the past month. The stock hit a new 52-week high of $40.4 in the previous session. JFrog Ltd. has gained 7.9% since the start of the year compared to the 9.6% move for the Zacks Computer and Technology sector and the 18.5% return for the Zacks Internet - Software 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 1, 2023, JFrog Ltd. reported EPS of $0.15 versus consensus estimate of $0.08.
For the current fiscal year, JFrog Ltd. is expected to post earnings of $0.52 per share on $345.68 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.67 per share on $420.86 million in revenues. This represents a year-over-year change of 17.68% and 21.75%, respectively.
Valuation Metrics
JFrog Ltd. 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.
JFrog Ltd. has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 71.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 33.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 19.1X. 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, JFrog Ltd. 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 JFrog Ltd. fits the bill. Thus, it seems as though JFrog Ltd. shares could have potential in the weeks and months to come.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Have you been paying attention to shares of JFrog Ltd. (FROG - Free Report) ? Shares have been on the move with the stock up 13.2% over the past month. The stock hit a new 52-week high of $40.4 in the previous session. JFrog Ltd. has gained 7.9% since the start of the year compared to the 9.6% move for the Zacks Computer and Technology sector and the 18.5% return for the Zacks Internet - Software 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 1, 2023, JFrog Ltd. reported EPS of $0.15 versus consensus estimate of $0.08.
For the current fiscal year, JFrog Ltd. is expected to post earnings of $0.52 per share on $345.68 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.67 per share on $420.86 million in revenues. This represents a year-over-year change of 17.68% and 21.75%, respectively.
Valuation Metrics
JFrog Ltd. 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.
JFrog Ltd. has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 71.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 33.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 19.1X. 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, JFrog Ltd. 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 JFrog Ltd. fits the bill. Thus, it seems as though JFrog Ltd. shares could have potential in the weeks and months to come.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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