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Hudson Technologies, Inc. (HDSN) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Hudson Technologies (HDSN - Free Report) ? Shares have been on the move with the stock up 37.6% over the past month. The stock hit a new 52-week high of $11.34 in the previous session. Hudson Technologies has gained 138.3% since the start of the year compared to the -9% move for the Zacks Industrial Products sector and the -21% return for the Zacks Industrial Services 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 November 2, 2022, Hudson Tech reported EPS of $0.56 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 14.75%.
For the current fiscal year, Hudson Tech is expected to post earnings of $2.16 per share on $311.8 million in revenues. This represents a 213.04% change in EPS on a 61.77% change in revenues. For the next fiscal year, the company is expected to earn $1.51 per share on $343 million in revenues. This represents a year-over-year change of -30.09% and 10.01%, respectively.
Valuation Metrics
Hudson Tech 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. 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.
Hudson Tech has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 4.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 11.8X. Additionally, the stock has a PEG ratio of 0.16. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Hudson Tech currently has a Zacks Rank of #1 (Strong 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 Hudson Tech meets the list of requirements. Thus, it seems as though Hudson Tech shares could have potential in the weeks and months to come.
How Does HDSN Stack Up to the Competition?
Shares of HDSN 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 W.W. Grainger, Inc. (GWW - Free Report) . GWW has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. W.W. Grainger, Inc. beat our consensus estimate by 15.02%, and for the current fiscal year, GWW is expected to post earnings of $30.68 per share on revenue of $15.18 billion.
Shares of W.W. Grainger, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 20.1X and a P/CF of 24.77X.
The Industrial Services industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for HDSN and GWW, even beyond their own solid fundamental situation.
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Hudson Technologies, Inc. (HDSN) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Hudson Technologies (HDSN - Free Report) ? Shares have been on the move with the stock up 37.6% over the past month. The stock hit a new 52-week high of $11.34 in the previous session. Hudson Technologies has gained 138.3% since the start of the year compared to the -9% move for the Zacks Industrial Products sector and the -21% return for the Zacks Industrial Services 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 November 2, 2022, Hudson Tech reported EPS of $0.56 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 14.75%.
For the current fiscal year, Hudson Tech is expected to post earnings of $2.16 per share on $311.8 million in revenues. This represents a 213.04% change in EPS on a 61.77% change in revenues. For the next fiscal year, the company is expected to earn $1.51 per share on $343 million in revenues. This represents a year-over-year change of -30.09% and 10.01%, respectively.
Valuation Metrics
Hudson Tech 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. 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.
Hudson Tech has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 4.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 11.8X versus its peer group's average of 11.8X. Additionally, the stock has a PEG ratio of 0.16. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Hudson Tech currently has a Zacks Rank of #1 (Strong 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 Hudson Tech meets the list of requirements. Thus, it seems as though Hudson Tech shares could have potential in the weeks and months to come.
How Does HDSN Stack Up to the Competition?
Shares of HDSN 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 W.W. Grainger, Inc. (GWW - Free Report) . GWW has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. W.W. Grainger, Inc. beat our consensus estimate by 15.02%, and for the current fiscal year, GWW is expected to post earnings of $30.68 per share on revenue of $15.18 billion.
Shares of W.W. Grainger, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 20.1X and a P/CF of 24.77X.
The Industrial Services industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for HDSN and GWW, even beyond their own solid fundamental situation.