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eGain (EGAN) Hits 52-Week High, Can the Run Continue?
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Shares of eGain (EGAN - Free Report) have been strong performers lately, with the stock up 28.4% over the past month. The stock hit a new 52-week high of $15.07 in the previous session. eGain has gained 88.6% since the start of the year compared to the 24.7% move for the Zacks Computer and Technology sector and the 78.6% 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 September 2, 2020, eGain reported EPS of $0.08 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 1.66%.
For the current fiscal year, eGain is expected to post earnings of $0.2 per share on $79.44 million in revenues. This represents a -31.03% change in EPS on a 9.23% change in revenues. For the next fiscal year, the company is expected to earn $0.22 per share on $89.14 million in revenues. This represents a year-over-year change of 7.5% and 12.21%, respectively.
Valuation Metrics
eGain 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 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. 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.
eGain has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 74.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 43.9X versus its peer group's average of 30X. Additionally, the stock has a PEG ratio of 3.73. 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, eGain 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 eGain meets the list of requirements. Thus, it seems as though eGain shares could have potential in the weeks and months to come.
How Does eGain Stack Up to the Competition?
Shares of eGain have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Evolent Health (EVH - Free Report) , Micro Focus International PLC Sponsored , and Mimecast , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for eGain. Still, the fundamentals for eGain are promising, and it still has potential despite being at a 52-week high.
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eGain (EGAN) Hits 52-Week High, Can the Run Continue?
Shares of eGain (EGAN - Free Report) have been strong performers lately, with the stock up 28.4% over the past month. The stock hit a new 52-week high of $15.07 in the previous session. eGain has gained 88.6% since the start of the year compared to the 24.7% move for the Zacks Computer and Technology sector and the 78.6% 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 September 2, 2020, eGain reported EPS of $0.08 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 1.66%.
For the current fiscal year, eGain is expected to post earnings of $0.2 per share on $79.44 million in revenues. This represents a -31.03% change in EPS on a 9.23% change in revenues. For the next fiscal year, the company is expected to earn $0.22 per share on $89.14 million in revenues. This represents a year-over-year change of 7.5% and 12.21%, respectively.
Valuation Metrics
eGain 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 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. 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.
eGain has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 74.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 43.9X versus its peer group's average of 30X. Additionally, the stock has a PEG ratio of 3.73. 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, eGain 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 eGain meets the list of requirements. Thus, it seems as though eGain shares could have potential in the weeks and months to come.
How Does eGain Stack Up to the Competition?
Shares of eGain have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Evolent Health (EVH - Free Report) , Micro Focus International PLC Sponsored , and Mimecast , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for eGain. Still, the fundamentals for eGain are promising, and it still has potential despite being at a 52-week high.