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Integer Holdings Corporation (ITGR) Soars to 52-Week High, Time to Cash Out?
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Shares of Integer (ITGR - Free Report) have been strong performers lately, with the stock up 2.3% over the past month. The stock hit a new 52-week high of $106.78 in the previous session. Integer has gained 6.7% since the start of the year compared to the 5.4% move for the Zacks Medical sector and the 4.1% return for the Zacks Medical - Instruments 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 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 $5.44 per share on $1.59 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $6.20 per share on $1.73 billion in revenues. This represents a year-over-year change of 17.8% and 8.39%, 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. 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.
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 19.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27.1X. On a trailing cash flow basis, the stock currently trades at 15.7X versus its peer group's average of 13.9X. Additionally, the stock has a PEG ratio of 1.29. 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, 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 have a bit more room to run in the near term.
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 Sensus Healthcare, Inc. (SRTS - Free Report) . SRTS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Sensus Healthcare, Inc. beat our consensus estimate by 116.67%, and for the current fiscal year, SRTS is expected to post earnings of $0.08 per share on revenue of $28.31 million.
Shares of Sensus Healthcare, Inc. have gained 42.7% over the past month, and currently trade at a forward P/E of 48.5X and a P/CF of 5.47X.
The Medical - Instruments industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ITGR and SRTS, even beyond their own solid fundamental situation.
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Integer Holdings Corporation (ITGR) Soars to 52-Week High, Time to Cash Out?
Shares of Integer (ITGR - Free Report) have been strong performers lately, with the stock up 2.3% over the past month. The stock hit a new 52-week high of $106.78 in the previous session. Integer has gained 6.7% since the start of the year compared to the 5.4% move for the Zacks Medical sector and the 4.1% return for the Zacks Medical - Instruments 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 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 $5.44 per share on $1.59 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $6.20 per share on $1.73 billion in revenues. This represents a year-over-year change of 17.8% and 8.39%, 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. 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.
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 19.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27.1X. On a trailing cash flow basis, the stock currently trades at 15.7X versus its peer group's average of 13.9X. Additionally, the stock has a PEG ratio of 1.29. 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, 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 have a bit more room to run in the near term.
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 Sensus Healthcare, Inc. (SRTS - Free Report) . SRTS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Sensus Healthcare, Inc. beat our consensus estimate by 116.67%, and for the current fiscal year, SRTS is expected to post earnings of $0.08 per share on revenue of $28.31 million.
Shares of Sensus Healthcare, Inc. have gained 42.7% over the past month, and currently trade at a forward P/E of 48.5X and a P/CF of 5.47X.
The Medical - Instruments industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ITGR and SRTS, even beyond their own solid fundamental situation.