Have you been paying attention to shares of Vivint Smart Home ? Shares have been on the move with the stock up 27% over the past month. The stock hit a new 52-week high of $11.93 in the previous session. Vivint Smart Home has gained 21.8% since the start of the year compared to the -27.4% move for the Zacks Retail-Wholesale sector and the -27.8% return for the Zacks Retail - Consumer Electronics 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 8, 2022, Vivint Smart Home reported EPS of $-0.19 versus consensus estimate of $-0.31.
For the current fiscal year, Vivint Smart Home is expected to post earnings of -$0.51 per share on $1.67 billion in revenues. This represents a 70.18% change in EPS on a 12.62% change in revenues. For the next fiscal year, the company is expected to earn -$0.41 per share on $1.79 billion in revenues. This represents a year-over-year change of 19.61% and 7.41%, respectively.
Valuation Metrics
Vivint Smart Home 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 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.
Vivint Smart Home has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Vivint Smart Home 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 Vivint Smart Home meets the list of requirements. Thus, it seems as though Vivint Smart Home shares could have a bit more room to run in the near term.
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Vivint Smart Home, Inc. (VVNT) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Vivint Smart Home ? Shares have been on the move with the stock up 27% over the past month. The stock hit a new 52-week high of $11.93 in the previous session. Vivint Smart Home has gained 21.8% since the start of the year compared to the -27.4% move for the Zacks Retail-Wholesale sector and the -27.8% return for the Zacks Retail - Consumer Electronics 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 8, 2022, Vivint Smart Home reported EPS of $-0.19 versus consensus estimate of $-0.31.
For the current fiscal year, Vivint Smart Home is expected to post earnings of -$0.51 per share on $1.67 billion in revenues. This represents a 70.18% change in EPS on a 12.62% change in revenues. For the next fiscal year, the company is expected to earn -$0.41 per share on $1.79 billion in revenues. This represents a year-over-year change of 19.61% and 7.41%, respectively.
Valuation Metrics
Vivint Smart Home 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 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.
Vivint Smart Home has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Vivint Smart Home 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 Vivint Smart Home meets the list of requirements. Thus, it seems as though Vivint Smart Home shares could have a bit more room to run in the near term.