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Meta (CASH) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Meta Financial Group (CASH - Free Report) ? Shares have been on the move with the stock up 14.5% over the past month. The stock hit a new 52-week high of $51.86 in the previous session. Meta Financial Group has gained 37.6% since the start of the year compared to the 17.7% move for the Zacks Finance sector and the 33.4% return for the Zacks Financial - Savings and Loan industry.
What's Driving the Outperformance?
The stock has a great 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 April 27, 2021, Meta reported EPS of $1.84 versus consensus estimate of $1.54.
For the current fiscal year, Meta is expected to post earnings of $4.15 per share on $524.05 million in revenues. This represents a 70.78% change in EPS on a 5.06% change in revenues. For the next fiscal year, the company is expected to earn $4.41 per share on $552.62 million in revenues. This represents a year-over-year change of 6.27% and 5.45%, respectively.
Valuation Metrics
Meta 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Meta 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 12.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 12.2X. 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, Meta 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 Meta passes the test. Thus, it seems as though Meta shares could still be poised for more gains ahead.
How Does Meta Stack Up to the Competition?
Shares of Meta 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 solid potential picks, including Citizens Community Bancorp (CZWI - Free Report) , Brookline Bancorp (BRKL - Free Report) , and South State (SSB - 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.
The Zacks Industry Rank is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Meta, even beyond its own solid fundamental situation.
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Meta (CASH) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Meta Financial Group (CASH - Free Report) ? Shares have been on the move with the stock up 14.5% over the past month. The stock hit a new 52-week high of $51.86 in the previous session. Meta Financial Group has gained 37.6% since the start of the year compared to the 17.7% move for the Zacks Finance sector and the 33.4% return for the Zacks Financial - Savings and Loan industry.
What's Driving the Outperformance?
The stock has a great 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 April 27, 2021, Meta reported EPS of $1.84 versus consensus estimate of $1.54.
For the current fiscal year, Meta is expected to post earnings of $4.15 per share on $524.05 million in revenues. This represents a 70.78% change in EPS on a 5.06% change in revenues. For the next fiscal year, the company is expected to earn $4.41 per share on $552.62 million in revenues. This represents a year-over-year change of 6.27% and 5.45%, respectively.
Valuation Metrics
Meta 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Meta 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 12.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 12.2X. 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, Meta 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 Meta passes the test. Thus, it seems as though Meta shares could still be poised for more gains ahead.
How Does Meta Stack Up to the Competition?
Shares of Meta 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 solid potential picks, including Citizens Community Bancorp (CZWI - Free Report) , Brookline Bancorp (BRKL - Free Report) , and South State (SSB - 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.
The Zacks Industry Rank is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Meta, even beyond its own solid fundamental situation.