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The RealReal, Inc. (REAL) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of The RealReal (REAL - Free Report) ? Shares have been on the move with the stock up 103.3% over the past month. The stock hit a new 52-week high of $4.1 in the previous session. The RealReal has gained 82.1% since the start of the year compared to the 1.2% move for the Zacks Consumer Discretionary sector and the 3.4% return for the Zacks Consumer Products - Discretionary 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 29, 2024, The RealReal reported EPS of $-0.07 versus consensus estimate of $-0.11.
For the current fiscal year, The RealReal is expected to post earnings of -$0.43 per share on $585 million in revenues. This represents a 50.57% change in EPS on a 6.5% change in revenues. For the next fiscal year, the company is expected to earn -$0.28 per share on $667.49 million in revenues. This represents a year-over-year change of 34.88% and 14.1%, respectively.
Valuation Metrics
The RealReal 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 is due for a pullback from this level.
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.
The RealReal has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, The RealReal 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 The RealReal meets the list of requirements. Thus, it seems as though The RealReal shares could still be poised for more gains ahead.
How Does REAL Stack Up to the Competition?
Shares of REAL 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 Central Garden & Pet Company (CENT - Free Report) . CENT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Central Garden & Pet Company beat our consensus estimate by 105.56%, and for the current fiscal year, CENT is expected to post earnings of $2.22 per share on revenue of $3.26 billion.
Shares of Central Garden & Pet Company have gained 9.6% over the past month, and currently trade at a forward P/E of 18.57X and a P/CF of 12.06X.
The Consumer Products - Discretionary industry is in the top 15% of all the industries we have in our universe, so it looks like there are some nice tailwinds for REAL and CENT, even beyond their own solid fundamental situation.
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The RealReal, Inc. (REAL) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of The RealReal (REAL - Free Report) ? Shares have been on the move with the stock up 103.3% over the past month. The stock hit a new 52-week high of $4.1 in the previous session. The RealReal has gained 82.1% since the start of the year compared to the 1.2% move for the Zacks Consumer Discretionary sector and the 3.4% return for the Zacks Consumer Products - Discretionary 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 29, 2024, The RealReal reported EPS of $-0.07 versus consensus estimate of $-0.11.
For the current fiscal year, The RealReal is expected to post earnings of -$0.43 per share on $585 million in revenues. This represents a 50.57% change in EPS on a 6.5% change in revenues. For the next fiscal year, the company is expected to earn -$0.28 per share on $667.49 million in revenues. This represents a year-over-year change of 34.88% and 14.1%, respectively.
Valuation Metrics
The RealReal 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 is due for a pullback from this level.
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.
The RealReal has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
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, The RealReal 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 The RealReal meets the list of requirements. Thus, it seems as though The RealReal shares could still be poised for more gains ahead.
How Does REAL Stack Up to the Competition?
Shares of REAL 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 Central Garden & Pet Company (CENT - Free Report) . CENT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Central Garden & Pet Company beat our consensus estimate by 105.56%, and for the current fiscal year, CENT is expected to post earnings of $2.22 per share on revenue of $3.26 billion.
Shares of Central Garden & Pet Company have gained 9.6% over the past month, and currently trade at a forward P/E of 18.57X and a P/CF of 12.06X.
The Consumer Products - Discretionary industry is in the top 15% of all the industries we have in our universe, so it looks like there are some nice tailwinds for REAL and CENT, even beyond their own solid fundamental situation.