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Impinj, Inc. (PI) Hit a 52 Week High, Can the Run Continue?
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Shares of Impinj (PI - Free Report) have been strong performers lately, with the stock up 36.5% over the past month. The stock hit a new 52-week high of $124.52 in the previous session. Impinj has gained 37.3% since the start of the year compared to the -30.5% move for the Zacks Computer and Technology sector and the -26.3% return for the Zacks Electronics - Semiconductors 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 October 26, 2022, Impinj reported EPS of $0.34 versus consensus estimate of $0.18 while it beat the consensus revenue estimate by 5.57%.
For the current fiscal year, Impinj is expected to post earnings of $0.89 per share on $253.7 million in revenues. This represents a 260% change in EPS on a 33.33% change in revenues. For the next fiscal year, the company is expected to earn $1.35 per share on $316.25 million in revenues. This represents a year-over-year change of 50% and 24.65%, respectively.
Valuation Metrics
Impinj 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.
Impinj has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 136.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 11.3X. Additionally, the stock has a PEG ratio of 5.44. 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, Impinj 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 Impinj meets the list of requirements. Thus, it seems as though Impinj shares could have potential in the weeks and months to come.
How Does PI Stack Up to the Competition?
Shares of PI 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 Lattice Semiconductor Corporation (LSCC - Free Report) . LSCC has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Lattice Semiconductor Corporation beat our consensus estimate by 9.09%, and for the current fiscal year, LSCC is expected to post earnings of $2.04 per share on revenue of $659.6 million.
Shares of Lattice Semiconductor Corporation have gained 39.1% over the past month, and currently trade at a forward P/E of 40.18X and a P/CF of 72.86X.
The Electronics - Semiconductors industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for PI and LSCC, even beyond their own solid fundamental situation.
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Impinj, Inc. (PI) Hit a 52 Week High, Can the Run Continue?
Shares of Impinj (PI - Free Report) have been strong performers lately, with the stock up 36.5% over the past month. The stock hit a new 52-week high of $124.52 in the previous session. Impinj has gained 37.3% since the start of the year compared to the -30.5% move for the Zacks Computer and Technology sector and the -26.3% return for the Zacks Electronics - Semiconductors 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 October 26, 2022, Impinj reported EPS of $0.34 versus consensus estimate of $0.18 while it beat the consensus revenue estimate by 5.57%.
For the current fiscal year, Impinj is expected to post earnings of $0.89 per share on $253.7 million in revenues. This represents a 260% change in EPS on a 33.33% change in revenues. For the next fiscal year, the company is expected to earn $1.35 per share on $316.25 million in revenues. This represents a year-over-year change of 50% and 24.65%, respectively.
Valuation Metrics
Impinj 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.
Impinj has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 136.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 11.3X. Additionally, the stock has a PEG ratio of 5.44. 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, Impinj 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 Impinj meets the list of requirements. Thus, it seems as though Impinj shares could have potential in the weeks and months to come.
How Does PI Stack Up to the Competition?
Shares of PI 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 Lattice Semiconductor Corporation (LSCC - Free Report) . LSCC has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Lattice Semiconductor Corporation beat our consensus estimate by 9.09%, and for the current fiscal year, LSCC is expected to post earnings of $2.04 per share on revenue of $659.6 million.
Shares of Lattice Semiconductor Corporation have gained 39.1% over the past month, and currently trade at a forward P/E of 40.18X and a P/CF of 72.86X.
The Electronics - Semiconductors industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for PI and LSCC, even beyond their own solid fundamental situation.