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Blackbaud, Inc. (BLKB) Soars to 52-Week High, Time to Cash Out?
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Shares of Blackbaud (BLKB - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $84.45 in the previous session. Blackbaud has gained 42.9% since the start of the year compared to the 47.2% move for the Zacks Computer and Technology sector and the 55% return for the Zacks Computer - Software 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 31, 2023, Blackbaud reported EPS of $1.12 versus consensus estimate of $0.97 while it beat the consensus revenue estimate by 0.2%.
For the current fiscal year, Blackbaud is expected to post earnings of $3.86 per share on $1.11 billion in revenues. This represents a 43.49% change in EPS on a 4.76% change in revenues. For the next fiscal year, the company is expected to earn $4.53 per share on $1.2 billion in revenues. This represents a year-over-year change of 17.29% and 7.95%, respectively.
Valuation Metrics
Blackbaud 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. 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.
Blackbaud has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 30.4X. On a trailing cash flow basis, the stock currently trades at 28.3X versus its peer group's average of 28.3X. Additionally, the stock has a PEG ratio of 0.93. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Blackbaud 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 Blackbaud meets the list of requirements. Thus, it seems as though Blackbaud shares could still be poised for more gains ahead.
How Does BLKB Stack Up to the Competition?
Shares of BLKB 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 Pegasystems Inc. (PEGA - Free Report) . PEGA has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Pegasystems Inc. beat our consensus estimate by 4,300%, and for the current fiscal year, PEGA is expected to post earnings of $2.37 per share on revenue of $1.39 billion.
Shares of Pegasystems Inc. have gained 17.1% over the past month, and currently trade at a forward P/E of 29.25X and a P/CF of 441.44X.
The Computer - Software industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BLKB and PEGA, even beyond their own solid fundamental situation.
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Blackbaud, Inc. (BLKB) Soars to 52-Week High, Time to Cash Out?
Shares of Blackbaud (BLKB - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $84.45 in the previous session. Blackbaud has gained 42.9% since the start of the year compared to the 47.2% move for the Zacks Computer and Technology sector and the 55% return for the Zacks Computer - Software 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 31, 2023, Blackbaud reported EPS of $1.12 versus consensus estimate of $0.97 while it beat the consensus revenue estimate by 0.2%.
For the current fiscal year, Blackbaud is expected to post earnings of $3.86 per share on $1.11 billion in revenues. This represents a 43.49% change in EPS on a 4.76% change in revenues. For the next fiscal year, the company is expected to earn $4.53 per share on $1.2 billion in revenues. This represents a year-over-year change of 17.29% and 7.95%, respectively.
Valuation Metrics
Blackbaud 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. 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.
Blackbaud has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 30.4X. On a trailing cash flow basis, the stock currently trades at 28.3X versus its peer group's average of 28.3X. Additionally, the stock has a PEG ratio of 0.93. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Blackbaud 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 Blackbaud meets the list of requirements. Thus, it seems as though Blackbaud shares could still be poised for more gains ahead.
How Does BLKB Stack Up to the Competition?
Shares of BLKB 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 Pegasystems Inc. (PEGA - Free Report) . PEGA has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Pegasystems Inc. beat our consensus estimate by 4,300%, and for the current fiscal year, PEGA is expected to post earnings of $2.37 per share on revenue of $1.39 billion.
Shares of Pegasystems Inc. have gained 17.1% over the past month, and currently trade at a forward P/E of 29.25X and a P/CF of 441.44X.
The Computer - Software industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BLKB and PEGA, even beyond their own solid fundamental situation.