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BellRing Brands Inc. (BRBR) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of BellRing Brands (BRBR - Free Report) ? Shares have been on the move with the stock up 3.5% over the past month. The stock hit a new 52-week high of $61.11 in the previous session. BellRing Brands has gained 7.6% since the start of the year compared to the 7.5% move for the Zacks Medical sector and the 7.4% return for the Zacks Medical - Products 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 February 5, 2024, BellRing Brands reported EPS of $0.43 versus consensus estimate of $0.39 while it beat the consensus revenue estimate by 5.51%.
For the current fiscal year, BellRing Brands is expected to post earnings of $1.66 per share on $1.92 billion in revenues. This represents a 25.76% change in EPS on a 15.34% change in revenues. For the next fiscal year, the company is expected to earn $1.93 per share on $2.12 billion in revenues. This represents a year-over-year change of 16.34% and 10.51%, respectively.
Valuation Metrics
BellRing Brands 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.
BellRing Brands has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 35.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.8X. On a trailing cash flow basis, the stock currently trades at 38.1X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 2.27. 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, BellRing Brands 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 BellRing Brands fits the bill. Thus, it seems as though BellRing Brands shares could have potential in the weeks and months to come.
How Does BRBR Stack Up to the Competition?
Shares of BRBR 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 Owens & Minor, Inc. (OMI - Free Report) . OMI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Owens & Minor, Inc. beat our consensus estimate by 1.47%, and for the current fiscal year, OMI is expected to post earnings of $1.54 per share on revenue of $10.72 billion.
Shares of Owens & Minor, Inc. have gained 28.8% over the past month, and currently trade at a forward P/E of 16.19X and a P/CF of 4.86X.
The Medical - Products industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BRBR and OMI, even beyond their own solid fundamental situation.
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BellRing Brands Inc. (BRBR) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of BellRing Brands (BRBR - Free Report) ? Shares have been on the move with the stock up 3.5% over the past month. The stock hit a new 52-week high of $61.11 in the previous session. BellRing Brands has gained 7.6% since the start of the year compared to the 7.5% move for the Zacks Medical sector and the 7.4% return for the Zacks Medical - Products 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 February 5, 2024, BellRing Brands reported EPS of $0.43 versus consensus estimate of $0.39 while it beat the consensus revenue estimate by 5.51%.
For the current fiscal year, BellRing Brands is expected to post earnings of $1.66 per share on $1.92 billion in revenues. This represents a 25.76% change in EPS on a 15.34% change in revenues. For the next fiscal year, the company is expected to earn $1.93 per share on $2.12 billion in revenues. This represents a year-over-year change of 16.34% and 10.51%, respectively.
Valuation Metrics
BellRing Brands 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.
BellRing Brands has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 35.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.8X. On a trailing cash flow basis, the stock currently trades at 38.1X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 2.27. 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, BellRing Brands 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 BellRing Brands fits the bill. Thus, it seems as though BellRing Brands shares could have potential in the weeks and months to come.
How Does BRBR Stack Up to the Competition?
Shares of BRBR 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 Owens & Minor, Inc. (OMI - Free Report) . OMI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Owens & Minor, Inc. beat our consensus estimate by 1.47%, and for the current fiscal year, OMI is expected to post earnings of $1.54 per share on revenue of $10.72 billion.
Shares of Owens & Minor, Inc. have gained 28.8% over the past month, and currently trade at a forward P/E of 16.19X and a P/CF of 4.86X.
The Medical - Products industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BRBR and OMI, even beyond their own solid fundamental situation.