Have you been paying attention to shares of
Silica Holdings (? Shares have been on the move with the stock up 43% over the past month. The stock hit a new 52-week high of $17.83 in the previous session. Silica Holdings has gained 77.9% since the start of the year compared to the 12.9% move for the Zacks Basic Materials sector and the 25.1% return for the Zacks Mining - Miscellaneous industry. SLCA Quick Quote SLCA - Free Report) 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 February 25, 2022, Silica Holdings reported EPS of $-0.22 versus consensus estimate of $-0.3.
For the current fiscal year, Silica Holdings is expected to post earnings of -$0.12 per share on $1.26 billion in revenues. This represents a 73.33% change in EPS on a 13.84% change in revenues. For the next fiscal year, the company is expected to earn $0.41 per share on $1.39 billion in revenues. This represents a year-over-year change of 437.5% and 10.77%, respectively.
Silica Holdings 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.
Silica Holdings has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Silica Holdings 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 Silica Holdings passes the test. Thus, it seems as though Silica Holdings shares could still be poised for more gains ahead.
How Does SLCA Stack Up to the Competition?
Shares of SLCA have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is
Materion Corporation (. MTRN has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of D. MTRN Quick Quote MTRN - Free Report)
Earnings were strong last quarter. Materion Corporation beat our consensus estimate by 7.62%, and for the current fiscal year, MTRN is expected to post earnings of $5 per share on revenue of $1.54 billion.
Shares of Materion Corporation have gained 0.1% over the past month, and currently trade at a forward P/E of 17.58X and a P/CF of 13.88X.
The Mining - Miscellaneous industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SLCA and MTRN, even beyond their own solid fundamental situation.