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SeaChange (SEAC) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of SeaChange International (SEAC - Free Report) ? Shares have been on the move with the stock up 180.4% over the past month. The stock hit a new 52-week high of $2.15 in the previous session. SeaChange International has gained 50% since the start of the year compared to the 21.2% move for the Zacks Computer and Technology sector and the 13.3% return for the Zacks Communication - Components 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 December 14, 2021, SeaChange reported EPS of $-0.03 versus consensus estimate of $-0.06.
Valuation Metrics
SeaChange 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.
SeaChange has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, SeaChange 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 SeaChange passes the test. Thus, it seems as though SeaChange shares could still be poised for more gains ahead.
How Does SeaChange Stack Up to the Competition?
Shares of SeaChange 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 impressive, including Harmonic (HLIT - Free Report) , Nitto Denko (NDEKY - Free Report) , and QUALCOMM (QCOM - 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 SeaChange. Still, the fundamentals for SeaChange are promising, and it still has potential despite being at a 52-week high.
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SeaChange (SEAC) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of SeaChange International (SEAC - Free Report) ? Shares have been on the move with the stock up 180.4% over the past month. The stock hit a new 52-week high of $2.15 in the previous session. SeaChange International has gained 50% since the start of the year compared to the 21.2% move for the Zacks Computer and Technology sector and the 13.3% return for the Zacks Communication - Components 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 December 14, 2021, SeaChange reported EPS of $-0.03 versus consensus estimate of $-0.06.
Valuation Metrics
SeaChange 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.
SeaChange has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, SeaChange 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 SeaChange passes the test. Thus, it seems as though SeaChange shares could still be poised for more gains ahead.
How Does SeaChange Stack Up to the Competition?
Shares of SeaChange 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 impressive, including Harmonic (HLIT - Free Report) , Nitto Denko (NDEKY - Free Report) , and QUALCOMM (QCOM - 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 SeaChange. Still, the fundamentals for SeaChange are promising, and it still has potential despite being at a 52-week high.