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Installed Building Products, Inc. (IBP) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Installed Building Products (IBP - Free Report) ? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $121.07 in the previous session. Installed Building Products has gained 41.2% since the start of the year compared to the 13.1% move for the Zacks Construction sector and the 21.6% return for the Zacks Building Products - Miscellaneous 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 22, 2023, Installed Building Products reported EPS of $2.43 versus consensus estimate of $2.27 while it beat the consensus revenue estimate by 0.62%.
For the current fiscal year, Installed Building Products is expected to post earnings of $8.41 per share on $2.65 billion in revenues. This represents a -6.03% change in EPS on a -0.77% change in revenues. For the next fiscal year, the company is expected to earn $8.33 per share on $2.68 billion in revenues. This represents a year-over-year change of -0.93% and 1.2%, respectively.
Valuation Metrics
Installed Building Products 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 they provide investors with an additional way to sort 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.
Installed Building Products has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.2X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 9.4X. 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, Installed Building Products 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 Installed Building Products fits the bill. Thus, it seems as though Installed Building Products shares could have a bit more room to run in the near term.
How Does IBP Stack Up to the Competition?
Shares of IBP 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 Frontdoor Inc. (FTDR - Free Report) . FTDR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Frontdoor Inc. beat our consensus estimate by 208.33%, and for the current fiscal year, FTDR is expected to post earnings of $1.30 per share on revenue of $1.72 billion.
Shares of Frontdoor Inc. have gained 3.2% over the past month, and currently trade at a forward P/E of 21.87X and a P/CF of 15.19X.
The Building Products - Miscellaneous industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for IBP and FTDR, even beyond their own solid fundamental situation.
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Installed Building Products, Inc. (IBP) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Installed Building Products (IBP - Free Report) ? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $121.07 in the previous session. Installed Building Products has gained 41.2% since the start of the year compared to the 13.1% move for the Zacks Construction sector and the 21.6% return for the Zacks Building Products - Miscellaneous 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 22, 2023, Installed Building Products reported EPS of $2.43 versus consensus estimate of $2.27 while it beat the consensus revenue estimate by 0.62%.
For the current fiscal year, Installed Building Products is expected to post earnings of $8.41 per share on $2.65 billion in revenues. This represents a -6.03% change in EPS on a -0.77% change in revenues. For the next fiscal year, the company is expected to earn $8.33 per share on $2.68 billion in revenues. This represents a year-over-year change of -0.93% and 1.2%, respectively.
Valuation Metrics
Installed Building Products 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 they provide investors with an additional way to sort 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.
Installed Building Products has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.2X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 9.4X. 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, Installed Building Products 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 Installed Building Products fits the bill. Thus, it seems as though Installed Building Products shares could have a bit more room to run in the near term.
How Does IBP Stack Up to the Competition?
Shares of IBP 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 Frontdoor Inc. (FTDR - Free Report) . FTDR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Frontdoor Inc. beat our consensus estimate by 208.33%, and for the current fiscal year, FTDR is expected to post earnings of $1.30 per share on revenue of $1.72 billion.
Shares of Frontdoor Inc. have gained 3.2% over the past month, and currently trade at a forward P/E of 21.87X and a P/CF of 15.19X.
The Building Products - Miscellaneous industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for IBP and FTDR, even beyond their own solid fundamental situation.