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Procore Technologies, Inc. (PCOR) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Procore Technologies (PCOR - Free Report) ? Shares have been on the move with the stock up 7.8% over the past month. The stock hit a new 52-week high of $80 in the previous session. Procore Technologies has gained 14% since the start of the year compared to the 10.9% move for the Zacks Business Services sector and the 18.9% return for the Zacks Technology Services 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 February 15, 2024, Procore Technologies reported EPS of $0.17 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 4.77%.
For the current fiscal year, Procore Technologies is expected to post earnings of $0.68 per share on $1.14 billion in revenues. This represents a 126.67% change in EPS on a 19.92% change in revenues. For the next fiscal year, the company is expected to earn $0.95 per share on $1.37 billion in revenues. This represents a year-over-year change of 39.29% and 20.03%, respectively.
Valuation Metrics
Procore Technologies 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.
Procore Technologies has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 115.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 10.5X. 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, Procore Technologies 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 Procore Technologies meets the list of requirements. Thus, it seems as though Procore Technologies shares could have potential in the weeks and months to come.
How Does PCOR Stack Up to the Competition?
Shares of PCOR 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 Veralto Corporation (VLTO - Free Report) . VLTO has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Veralto Corporation beat our consensus estimate by 8.75%, and for the current fiscal year, VLTO is expected to post earnings of $3.26 per share on revenue of $5.13 billion.
Shares of Veralto Corporation have gained 12.9% over the past month, and currently trade at a forward P/E of 26.59X and a P/CF of 24.45X.
The Technology Services industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PCOR and VLTO, even beyond their own solid fundamental situation.
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Procore Technologies, Inc. (PCOR) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Procore Technologies (PCOR - Free Report) ? Shares have been on the move with the stock up 7.8% over the past month. The stock hit a new 52-week high of $80 in the previous session. Procore Technologies has gained 14% since the start of the year compared to the 10.9% move for the Zacks Business Services sector and the 18.9% return for the Zacks Technology Services 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 February 15, 2024, Procore Technologies reported EPS of $0.17 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 4.77%.
For the current fiscal year, Procore Technologies is expected to post earnings of $0.68 per share on $1.14 billion in revenues. This represents a 126.67% change in EPS on a 19.92% change in revenues. For the next fiscal year, the company is expected to earn $0.95 per share on $1.37 billion in revenues. This represents a year-over-year change of 39.29% and 20.03%, respectively.
Valuation Metrics
Procore Technologies 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.
Procore Technologies has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 115.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 10.5X. 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, Procore Technologies 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 Procore Technologies meets the list of requirements. Thus, it seems as though Procore Technologies shares could have potential in the weeks and months to come.
How Does PCOR Stack Up to the Competition?
Shares of PCOR 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 Veralto Corporation (VLTO - Free Report) . VLTO has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Veralto Corporation beat our consensus estimate by 8.75%, and for the current fiscal year, VLTO is expected to post earnings of $3.26 per share on revenue of $5.13 billion.
Shares of Veralto Corporation have gained 12.9% over the past month, and currently trade at a forward P/E of 26.59X and a P/CF of 24.45X.
The Technology Services industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PCOR and VLTO, even beyond their own solid fundamental situation.