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Badger Meter (BMI) Advances But Underperforms Market: Key Facts

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Badger Meter (BMI - Free Report) closed at $189.14 in the latest trading session, marking a +1.05% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.19%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 1.96%.

Shares of the manufacturer of products that measure gas and water flow witnessed a loss of 2.34% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.37% and the S&P 500's gain of 3.35%.

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. Meanwhile, the latest consensus estimate predicts the revenue to be $199.75 million, indicating a 13.58% increase compared to the same quarter of the previous 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.

Any recent changes to analyst estimates for Badger Meter should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Badger Meter is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Badger Meter is currently trading at a Forward P/E ratio of 48.13. Its industry sports an average Forward P/E of 26.68, so one might conclude that Badger Meter is trading at a premium comparatively.

It's also important to note that BMI currently trades at a PEG ratio of 3.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Instruments - Control was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Instruments - Control industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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