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Asure Software Inc (ASUR) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Asure Software Inc (ASUR - Free Report) ? Shares have been on the move with the stock up 31.2% over the past month. The stock hit a new 52-week high of $14.83 in the previous session. Asure Software Inc has gained 53.1% since the start of the year compared to the 12.8% move for the Zacks Computer and Technology sector and the 4.3% return for the Zacks Internet - Delivery Services industry.
What's Driving the Outperformance?
The stock has a great 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 27, 2023, Asure Software Inc reported EPS of $0.17 versus consensus estimate of $0.01 while it beat the consensus revenue estimate by 23.91%.
For the current fiscal year, Asure Software Inc is expected to post earnings of $0.34 per share on $105.74 million in revenues. This represents a 133.33% change in EPS on a 10.35% change in revenues. For the next fiscal year, the company is expected to earn $0.44 per share on $116.6 million in revenues. This represents a year-over-year change of 27.14% and 10.27%, respectively.
Valuation Metrics
Asure Software Inc 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.
Asure Software Inc has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 41.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 41.5X. On a trailing cash flow basis, the stock currently trades at 13.4X versus its peer group's average of 13.4X. Additionally, the stock has a PEG ratio of 1.66. 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, Asure Software Inc 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 Asure Software Inc meets the list of requirements. Thus, it seems as though Asure Software Inc shares could still be poised for more gains ahead.
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Asure Software Inc (ASUR) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Asure Software Inc (ASUR - Free Report) ? Shares have been on the move with the stock up 31.2% over the past month. The stock hit a new 52-week high of $14.83 in the previous session. Asure Software Inc has gained 53.1% since the start of the year compared to the 12.8% move for the Zacks Computer and Technology sector and the 4.3% return for the Zacks Internet - Delivery Services industry.
What's Driving the Outperformance?
The stock has a great 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 27, 2023, Asure Software Inc reported EPS of $0.17 versus consensus estimate of $0.01 while it beat the consensus revenue estimate by 23.91%.
For the current fiscal year, Asure Software Inc is expected to post earnings of $0.34 per share on $105.74 million in revenues. This represents a 133.33% change in EPS on a 10.35% change in revenues. For the next fiscal year, the company is expected to earn $0.44 per share on $116.6 million in revenues. This represents a year-over-year change of 27.14% and 10.27%, respectively.
Valuation Metrics
Asure Software Inc 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.
Asure Software Inc has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 41.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 41.5X. On a trailing cash flow basis, the stock currently trades at 13.4X versus its peer group's average of 13.4X. Additionally, the stock has a PEG ratio of 1.66. 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, Asure Software Inc 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 Asure Software Inc meets the list of requirements. Thus, it seems as though Asure Software Inc shares could still be poised for more gains ahead.