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Integer Holdings Corporation (ITGR) Hits Fresh High: Is There Still Room to Run?
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Shares of Integer (ITGR - Free Report) have been strong performers lately, with the stock up 14.9% over the past month. The stock hit a new 52-week high of $100.99 in the previous session. Integer has gained 46.4% since the start of the year compared to the -2.3% move for the Zacks Medical sector and the 4.9% return for the Zacks Medical - Instruments 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 October 26, 2023, Integer reported EPS of $1.27 versus consensus estimate of $1.05.
For the current fiscal year, Integer is expected to post earnings of $4.60 per share on $1.58 billion in revenues. This represents a 18.56% change in EPS on a 14.9% change in revenues. For the next fiscal year, the company is expected to earn $5.29 per share on $1.69 billion in revenues. This represents a year-over-year change of 15.07% and 7.07%, respectively.
Valuation Metrics
Integer 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Integer has a Value Score of B. The stock's Growth and Momentum Scores are C and C, 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 25.2X. On a trailing cash flow basis, the stock currently trades at 14.9X versus its peer group's average of 14.6X. Additionally, the stock has a PEG ratio of 1.38. 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, Integer 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 Integer passes the test. Thus, it seems as though Integer shares could still be poised for more gains ahead.
How Does ITGR Stack Up to the Competition?
Shares of ITGR 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 Penumbra, Inc. (PEN - Free Report) . PEN has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Penumbra, Inc. beat our consensus estimate by 45.65%, and for the current fiscal year, PEN is expected to post earnings of $2.86 per share on revenue of $1.06 billion.
Shares of Penumbra, Inc. have gained 15% over the past month, and currently trade at a forward P/E of 125.54X and a P/CF of 316.01X.
The Medical - Instruments 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 ITGR and PEN, even beyond their own solid fundamental situation.
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Integer Holdings Corporation (ITGR) Hits Fresh High: Is There Still Room to Run?
Shares of Integer (ITGR - Free Report) have been strong performers lately, with the stock up 14.9% over the past month. The stock hit a new 52-week high of $100.99 in the previous session. Integer has gained 46.4% since the start of the year compared to the -2.3% move for the Zacks Medical sector and the 4.9% return for the Zacks Medical - Instruments 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 October 26, 2023, Integer reported EPS of $1.27 versus consensus estimate of $1.05.
For the current fiscal year, Integer is expected to post earnings of $4.60 per share on $1.58 billion in revenues. This represents a 18.56% change in EPS on a 14.9% change in revenues. For the next fiscal year, the company is expected to earn $5.29 per share on $1.69 billion in revenues. This represents a year-over-year change of 15.07% and 7.07%, respectively.
Valuation Metrics
Integer 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Integer has a Value Score of B. The stock's Growth and Momentum Scores are C and C, 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 25.2X. On a trailing cash flow basis, the stock currently trades at 14.9X versus its peer group's average of 14.6X. Additionally, the stock has a PEG ratio of 1.38. 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, Integer 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 Integer passes the test. Thus, it seems as though Integer shares could still be poised for more gains ahead.
How Does ITGR Stack Up to the Competition?
Shares of ITGR 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 Penumbra, Inc. (PEN - Free Report) . PEN has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Penumbra, Inc. beat our consensus estimate by 45.65%, and for the current fiscal year, PEN is expected to post earnings of $2.86 per share on revenue of $1.06 billion.
Shares of Penumbra, Inc. have gained 15% over the past month, and currently trade at a forward P/E of 125.54X and a P/CF of 316.01X.
The Medical - Instruments 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 ITGR and PEN, even beyond their own solid fundamental situation.