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Itron (ITRI) Climbs 47% YTD: Will the Uptrend Continue?
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Itron (ITRI - Free Report) is witnessing solid momentum, with shares having gained 47% year to date compared with 9% and 19.8% growth of the sub-industry and S&P Composite, respectively.
With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters, and meter communication systems. It also provides networks and communication modules, software, services and sensors for effective management of electricity, gas and water resources for consumers.
Image Source: Zacks Investment Research
Catalysts Driving Growth
Itron's top-line performance is winning from higher software license sales and easing supply-chain issues along with strong operational execution. The company is likely to gain from secular growth trends of electrification, higher investment in critical infrastructure to improve reliability and growth of distributed energy resources amid increasing awareness regarding climate change.
ITRI recently announced expansion of its distributed intelligence platform by launching the latest Edge Gateway product line. This new product line will help utilities to achieve decarbonization and sustainability goals, manage critical infrastructure and support the growing adoption of distributed energy resources.
The company’s Network Solutions business segment is gaining from ramp of new and existing deployments.
Itron’s extensive restructuring efforts to cut down on overhead expenses and streamline its supply chain and manufacturing operations augur well. Strategic collaboration and frequent product launches are added positives.
However, weakness in Device Solutions segment owing to product pruning and sale of the company’s C&I gas business are weighing on ITRI’s performance. Rising operating expenses amid uncertain global macroeconomic conditions and volatile supply-chain dynamics are major headwinds. Also, leveraged balance sheet, higher component costs and stiff competition are concerns.
A Look at Estimates
Itron’s revenues are expected to increase 13.4% and 11.2% on a year-over-year basis in 2023 and 2024, respectively.
The bottom line is anticipated to rise 33.6% and 60.9% on a year-over-year basis in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $1.51 and $2.43, up 7.9% and 1.7%, respectively, in the past 60 days.
ITRI has delivered an earnings surprise of 222%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 0.3% in the past 60 days to $3.59 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have risen 23% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have increased 43.7% in the past year.
The consensus estimate for Adobe’s fiscal 2023 earnings is pegged at $15.70 per share, up 1.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 13.3%.
Adobe’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 3.1%. Shares of ADBE have improved 28.9% in the past year.
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Itron (ITRI) Climbs 47% YTD: Will the Uptrend Continue?
Itron (ITRI - Free Report) is witnessing solid momentum, with shares having gained 47% year to date compared with 9% and 19.8% growth of the sub-industry and S&P Composite, respectively.
With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters, and meter communication systems. It also provides networks and communication modules, software, services and sensors for effective management of electricity, gas and water resources for consumers.
Image Source: Zacks Investment Research
Catalysts Driving Growth
Itron's top-line performance is winning from higher software license sales and easing supply-chain issues along with strong operational execution. The company is likely to gain from secular growth trends of electrification, higher investment in critical infrastructure to improve reliability and growth of distributed energy resources amid increasing awareness regarding climate change.
ITRI recently announced expansion of its distributed intelligence platform by launching the latest Edge Gateway product line. This new product line will help utilities to achieve decarbonization and sustainability goals, manage critical infrastructure and support the growing adoption of distributed energy resources.
The company’s Network Solutions business segment is gaining from ramp of new and existing deployments.
Itron’s extensive restructuring efforts to cut down on overhead expenses and streamline its supply chain and manufacturing operations augur well. Strategic collaboration and frequent product launches are added positives.
However, weakness in Device Solutions segment owing to product pruning and sale of the company’s C&I gas business are weighing on ITRI’s performance. Rising operating expenses amid uncertain global macroeconomic conditions and volatile supply-chain dynamics are major headwinds. Also, leveraged balance sheet, higher component costs and stiff competition are concerns.
A Look at Estimates
Itron’s revenues are expected to increase 13.4% and 11.2% on a year-over-year basis in 2023 and 2024, respectively.
The bottom line is anticipated to rise 33.6% and 60.9% on a year-over-year basis in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings per share is pegged at $1.51 and $2.43, up 7.9% and 1.7%, respectively, in the past 60 days.
ITRI has delivered an earnings surprise of 222%, on average, in the trailing four quarters.
Other Key Picks
Some other top-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Cadence Design Technologies (CDNS - Free Report) and Adobe (ADBE - Free Report) . Cadence sports a Zacks Rank #1 while each of Woodward and Adobe carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 0.3% in the past 60 days to $3.59 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have risen 23% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have increased 43.7% in the past year.
The consensus estimate for Adobe’s fiscal 2023 earnings is pegged at $15.70 per share, up 1.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 13.3%.
Adobe’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 3.1%. Shares of ADBE have improved 28.9% in the past year.