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Badger Meter (BMI) Ascends While Market Falls: Some Facts to Note

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Badger Meter (BMI - Free Report) closed the most recent trading day at $192.15, moving +0.8% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.08%.

The manufacturer of products that measure gas and water flow's stock has climbed by 4.44% in the past month, falling short of the Computer and Technology sector's gain of 7.76% and outpacing the S&P 500's gain of 3.15%.

Investors will be eagerly watching for the performance of Badger Meter in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.98, marking a 28.95% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $199.75 million, reflecting a 13.58% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.89 per share and revenue of $799.07 million. These totals would mark changes of +23.89% and +13.57%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Badger Meter. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Badger Meter is holding a Zacks Rank of #1 (Strong Buy) right now.

From a valuation perspective, Badger Meter is currently exchanging hands at a Forward P/E ratio of 49.01. For comparison, its industry has an average Forward P/E of 27.07, which means Badger Meter is trading at a premium to the group.

We can also see that BMI currently has a PEG ratio of 3.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Instruments - Control stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.

The Instruments - Control industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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