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Axonics Inc. (AXNX) Soars to 52-Week High, Time to Cash Out?

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Have you been paying attention to shares of Axonics Modulation Technologies (AXNX - Free Report) ? Shares have been on the move with the stock up 6.1% over the past month. The stock hit a new 52-week high of $77.19 in the previous session. Axonics Modulation Technologies has gained 37.1% since the start of the year compared to the -17.1% move for the Zacks Medical sector and the -32% return for the Zacks Medical Info Systems 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 August 1, 2022, Axonics reported EPS of $-0.47 versus consensus estimate of $-0.57 while it beat the consensus revenue estimate by 16.48%.

For the current fiscal year, Axonics is expected to post earnings of -$1.86 per share on $253.45 million in revenues. This represents a 0% change in EPS on a 40.58% change in revenues. For the next fiscal year, the company is expected to earn -$1.15 per share on $312.79 million in revenues. This represents a year-over-year change of 37.89% and 23.41%, respectively.

Valuation Metrics

Axonics 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.

Axonics has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Axonics 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 Axonics passes the test. Thus, it seems as though Axonics shares could still be poised for more gains ahead.

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