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AxoGen, Inc. (AXGN) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of AxoGen (AXGN - Free Report) ? Shares have been on the move with the stock up 8.8% over the past month. The stock hit a new 52-week high of $10.65 in the previous session. AxoGen has gained 51.8% since the start of the year compared to the 7.9% move for the Zacks Medical sector and the 6.3% 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 November 7, 2023, AxoGen reported EPS of $0.01 versus consensus estimate of $-0.08.
For the current fiscal year, AxoGen is expected to post earnings of $0.03 per share on $158.8 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.17 per share on $178.5 million in revenues. This represents a year-over-year change of 118.75% and 12.41%, respectively.
Valuation Metrics
AxoGen 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.
AxoGen has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 345.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.9X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 13.1X. 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, AxoGen currently has a Zacks Rank of #2 (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 AxoGen passes the test. Thus, it seems as though AxoGen shares could have potential in the weeks and months to come.
How Does AXGN Stack Up to the Competition?
Shares of AXGN 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 Artivion, Inc. (AORT - Free Report) . AORT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Artivion, Inc. beat our consensus estimate by 184.62%, and for the current fiscal year, AORT is expected to post earnings of $0.26 per share on revenue of $388.9 million.
Shares of Artivion, Inc. have gained 20.4% over the past month, and currently trade at a forward P/E of 77.96X and a P/CF of 26.38X.
The Medical - Instruments industry is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AXGN and AORT, even beyond their own solid fundamental situation.
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AxoGen, Inc. (AXGN) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of AxoGen (AXGN - Free Report) ? Shares have been on the move with the stock up 8.8% over the past month. The stock hit a new 52-week high of $10.65 in the previous session. AxoGen has gained 51.8% since the start of the year compared to the 7.9% move for the Zacks Medical sector and the 6.3% 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 November 7, 2023, AxoGen reported EPS of $0.01 versus consensus estimate of $-0.08.
For the current fiscal year, AxoGen is expected to post earnings of $0.03 per share on $158.8 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.17 per share on $178.5 million in revenues. This represents a year-over-year change of 118.75% and 12.41%, respectively.
Valuation Metrics
AxoGen 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.
AxoGen has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 345.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.9X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 13.1X. 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, AxoGen currently has a Zacks Rank of #2 (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 AxoGen passes the test. Thus, it seems as though AxoGen shares could have potential in the weeks and months to come.
How Does AXGN Stack Up to the Competition?
Shares of AXGN 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 Artivion, Inc. (AORT - Free Report) . AORT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Artivion, Inc. beat our consensus estimate by 184.62%, and for the current fiscal year, AORT is expected to post earnings of $0.26 per share on revenue of $388.9 million.
Shares of Artivion, Inc. have gained 20.4% over the past month, and currently trade at a forward P/E of 77.96X and a P/CF of 26.38X.
The Medical - Instruments industry is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AXGN and AORT, even beyond their own solid fundamental situation.