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Badger Meter (BMI) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Badger Meter (BMI - Free Report) ending at $185.98, denoting a +0.01% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.27%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.88%.

The manufacturer of products that measure gas and water flow's shares have seen a decrease of 4.24% over the last month, surpassing the Computer and Technology sector's loss of 4.82% and falling behind the S&P 500's gain of 2.85%.

The investment community will be closely monitoring the performance of Badger Meter in its forthcoming earnings report. The company is expected to report EPS of $0.98, up 28.95% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $199.75 million, indicating a 13.58% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.89 per share and a revenue of $799.07 million, representing changes of +23.89% and +13.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Badger Meter. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Badger Meter is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Badger Meter is presently trading at a Forward P/E ratio of 47.82. This denotes a premium relative to the industry's average Forward P/E of 26.37.

Also, we should mention that BMI has a PEG ratio of 3.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Instruments - Control industry had an average PEG ratio of 2.3 as trading concluded yesterday.

The Instruments - Control industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 9, this industry ranks in the top 4% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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