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Legacy Housing (LEGH) Hits 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of Legacy Housing (LEGH - Free Report) ? Shares have been on the move with the stock up 20.4% over the past month. The stock hit a new 52-week high of $18.8 in the previous session. Legacy Housing has gained 23.6% since the start of the year compared to the 12.3% move for the Zacks Finance sector and the 8.8% return for the Zacks Real Estate - Operations 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, Legacy Housing reported EPS of $0.44 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 6.02%.
For the current fiscal year, Legacy Housing is expected to post earnings of $1.7 per share on $195.99 million in revenues. This represents a 14.86% change in EPS on a 10.9% change in revenues. For the next fiscal year, the company is expected to earn $1.83 per share on $206.79 million in revenues. This represents a year-over-year change of 7.65% and 5.51%, respectively.
Valuation Metrics
Legacy Housing 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 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. 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.
Legacy Housing has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 12.8X. 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, Legacy Housing 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 Legacy Housing fits the bill. Thus, it seems as though Legacy Housing shares could have a bit more room to run in the near term.
How Does Legacy Housing Stack Up to the Competition?
Shares of Legacy Housing have been moving higher, 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 solid potential picks, including CBRE Group (CBRE - Free Report) , Colliers International Group (CIGI - Free Report) , and FirstService (FSV - Free Report) , 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 Legacy Housing. Still, the fundamentals for Legacy Housing are promising, and it still has potential despite being at a 52-week high.
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Legacy Housing (LEGH) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Legacy Housing (LEGH - Free Report) ? Shares have been on the move with the stock up 20.4% over the past month. The stock hit a new 52-week high of $18.8 in the previous session. Legacy Housing has gained 23.6% since the start of the year compared to the 12.3% move for the Zacks Finance sector and the 8.8% return for the Zacks Real Estate - Operations 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, Legacy Housing reported EPS of $0.44 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 6.02%.
For the current fiscal year, Legacy Housing is expected to post earnings of $1.7 per share on $195.99 million in revenues. This represents a 14.86% change in EPS on a 10.9% change in revenues. For the next fiscal year, the company is expected to earn $1.83 per share on $206.79 million in revenues. This represents a year-over-year change of 7.65% and 5.51%, respectively.
Valuation Metrics
Legacy Housing 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 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. 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.
Legacy Housing has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 12.8X. 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, Legacy Housing 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 Legacy Housing fits the bill. Thus, it seems as though Legacy Housing shares could have a bit more room to run in the near term.
How Does Legacy Housing Stack Up to the Competition?
Shares of Legacy Housing have been moving higher, 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 solid potential picks, including CBRE Group (CBRE - Free Report) , Colliers International Group (CIGI - Free Report) , and FirstService (FSV - Free Report) , 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 Legacy Housing. Still, the fundamentals for Legacy Housing are promising, and it still has potential despite being at a 52-week high.