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Xometry (XMTR - Free Report) is a Zacks Rank #2 (Buy) that has an F for Value and an B for Growth The company has all the buzzwords that will get it on plenty of screens and searches… they are an AI enabled marketplace for on demand manufacturing. They use CNC machining, 3D printing, sheet cutting and injection molding. Let’s explore more about this company in this Bull of The Day article.
Description
Xometry’s (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet industrial sourcing platform and suite of cloud-based services are rapidly digitizing the $2.4 trillion manufacturing industry. Xometry provides manufacturers the critical resources they need to grow their business and makes it easy for buyers to access global manufacturing capacity and create locally resilient supply chains. The Xometry Instant Quoting Engine® leverages millions of pieces of data to quickly and effectively analyze complex parts in real-time, match buyers with the right suppliers globally and provide accurate pricing and lead times.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Xometry, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well. The average positive earnings surprise over the last year has been a +12.1%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For XMTR estimates are moving higher.
This quarter has XMTR expected to lose 1 cent and that estimate has increased a penny from the 2 cent loss it was at 60 days ago.
Next quarter is the first quarter of 2024 and the estimate is calling for a gain of 5 cents.
The full year 2023 has seen estimates move from -$0.50 to -$0.40 over the last 60 days.
Next fiscal year has seen a move higher from $0.02 to $0.23 over the same period.
Accelerating Growth
This year the company is looking for 21.5% topline growth and that is great but even better than that is the 2024 is calling for 28% topline growth. Accelerating growth on top is a great signal.
Valuation
The Zacks site shows no PE, but at 23 cents the forward PE works out to be 117x which is pretty high but the growth here is big. There is a 3.6x price to book multiple which is just a hair over the range that value investors like to see. Price to sales at 2.7x looks like it could easily double from here is revenue growth continues to accelerate.
The margins are at negative numbers over the last few quarters, but as noted above the next quarter is going to be positive. So we should see operating margins go from -17% to -6% and then to +1%.
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Bull Of The Day: Xometry (XMTR)
Xometry (XMTR - Free Report) is a Zacks Rank #2 (Buy) that has an F for Value and an B for Growth The company has all the buzzwords that will get it on plenty of screens and searches… they are an AI enabled marketplace for on demand manufacturing. They use CNC machining, 3D printing, sheet cutting and injection molding. Let’s explore more about this company in this Bull of The Day article.
Description
Xometry’s (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet industrial sourcing platform and suite of cloud-based services are rapidly digitizing the $2.4 trillion manufacturing industry. Xometry provides manufacturers the critical resources they need to grow their business and makes it easy for buyers to access global manufacturing capacity and create locally resilient supply chains. The Xometry Instant Quoting Engine® leverages millions of pieces of data to quickly and effectively analyze complex parts in real-time, match buyers with the right suppliers globally and provide accurate pricing and lead times.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Xometry, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well. The average positive earnings surprise over the last year has been a +12.1%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For XMTR estimates are moving higher.
This quarter has XMTR expected to lose 1 cent and that estimate has increased a penny from the 2 cent loss it was at 60 days ago.
Next quarter is the first quarter of 2024 and the estimate is calling for a gain of 5 cents.
The full year 2023 has seen estimates move from -$0.50 to -$0.40 over the last 60 days.
Next fiscal year has seen a move higher from $0.02 to $0.23 over the same period.
Accelerating Growth
This year the company is looking for 21.5% topline growth and that is great but even better than that is the 2024 is calling for 28% topline growth. Accelerating growth on top is a great signal.
Valuation
The Zacks site shows no PE, but at 23 cents the forward PE works out to be 117x which is pretty high but the growth here is big. There is a 3.6x price to book multiple which is just a hair over the range that value investors like to see. Price to sales at 2.7x looks like it could easily double from here is revenue growth continues to accelerate.
The margins are at negative numbers over the last few quarters, but as noted above the next quarter is going to be positive. So we should see operating margins go from -17% to -6% and then to +1%.