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Virco Manufacturing Corporation (VIRC) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Virco Manufacturing Corporation (VIRC - Free Report) ? Shares have been on the move with the stock up 6.2% over the past month. The stock hit a new 52-week high of $13 in the previous session. Virco Manufacturing Corporation has gained 2.2% since the start of the year compared to the 17.5% move for the Zacks Consumer Discretionary sector and the 1.1% return for the Zacks Furniture 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 December 8, 2023, Virco Manufacturing Corporation reported EPS of $0.62 versus consensus estimate of $0.39.
For the current fiscal year, Virco Manufacturing Corporation is expected to post earnings of $1.35 per share on $267.3 million in revenues. This represents a 32.35% change in EPS on a 15.68% change in revenues. For the next fiscal year, the company is expected to earn $1.72 per share on $289 million in revenues. This represents a year-over-year change of 27.41% and 8.12%, respectively.
Valuation Metrics
Virco Manufacturing Corporation 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.
Virco Manufacturing Corporation has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 6.8X. 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, Virco Manufacturing Corporation currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Virco Manufacturing Corporation passes the test. Thus, it seems as though Virco Manufacturing Corporation shares could still be poised for more gains ahead.
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Virco Manufacturing Corporation (VIRC) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Virco Manufacturing Corporation (VIRC - Free Report) ? Shares have been on the move with the stock up 6.2% over the past month. The stock hit a new 52-week high of $13 in the previous session. Virco Manufacturing Corporation has gained 2.2% since the start of the year compared to the 17.5% move for the Zacks Consumer Discretionary sector and the 1.1% return for the Zacks Furniture 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 December 8, 2023, Virco Manufacturing Corporation reported EPS of $0.62 versus consensus estimate of $0.39.
For the current fiscal year, Virco Manufacturing Corporation is expected to post earnings of $1.35 per share on $267.3 million in revenues. This represents a 32.35% change in EPS on a 15.68% change in revenues. For the next fiscal year, the company is expected to earn $1.72 per share on $289 million in revenues. This represents a year-over-year change of 27.41% and 8.12%, respectively.
Valuation Metrics
Virco Manufacturing Corporation 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.
Virco Manufacturing Corporation has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 6.8X. 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, Virco Manufacturing Corporation currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Virco Manufacturing Corporation passes the test. Thus, it seems as though Virco Manufacturing Corporation shares could still be poised for more gains ahead.