Have you been paying attention to shares of Volt Information Sciences ? Shares have been on the move with the stock up 17.1% over the past month. The stock hit a new 52-week high of $3.88 in the previous session. Volt Information Sciences has gained 97.2% since the start of the year compared to the -0.2% move for the Zacks Business Services sector and the 48.9% return for the Zacks Business - Services 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 March 16, 2021, Volt Information reported EPS of $-0.08 versus consensus estimate of $-0.19.
For the current fiscal year, Volt Information is expected to post earnings of $0.19 per share on $892.46 million in revenues. This represents a 129.23% change in EPS on an 8.56% change in revenues. For the next fiscal year, the company is expected to earn $0.29 per share on $946.5 million in revenues. This represents a year-over-year change of 52.63% and 6.06%, respectively.
Valuation Metrics
Volt Information 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.
Volt Information has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 48.6X versus its peer group's average of 12.1X. Additionally, the stock has a PEG ratio of 1.22. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Volt Information 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 Volt Information passes the test. Thus, it seems as though Volt Information shares could have potential in the weeks and months to come.
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Volt Information (VOLT) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Volt Information Sciences ? Shares have been on the move with the stock up 17.1% over the past month. The stock hit a new 52-week high of $3.88 in the previous session. Volt Information Sciences has gained 97.2% since the start of the year compared to the -0.2% move for the Zacks Business Services sector and the 48.9% return for the Zacks Business - Services 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 March 16, 2021, Volt Information reported EPS of $-0.08 versus consensus estimate of $-0.19.
For the current fiscal year, Volt Information is expected to post earnings of $0.19 per share on $892.46 million in revenues. This represents a 129.23% change in EPS on an 8.56% change in revenues. For the next fiscal year, the company is expected to earn $0.29 per share on $946.5 million in revenues. This represents a year-over-year change of 52.63% and 6.06%, respectively.
Valuation Metrics
Volt Information 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.
Volt Information has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 48.6X versus its peer group's average of 12.1X. Additionally, the stock has a PEG ratio of 1.22. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Volt Information 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 Volt Information passes the test. Thus, it seems as though Volt Information shares could have potential in the weeks and months to come.