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The Honest Company, Inc. (HNST) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Honest (HNST - Free Report) ? Shares have been on the move with the stock up 72% over the past month. The stock hit a new 52-week high of $6.77 in the previous session. Honest has gained 97% since the start of the year compared to the 11.5% move for the Zacks Consumer Discretionary sector and the 12% return for the Zacks Consumer Products - Discretionary industry.
What's Driving the Outperformance?
The stock has an impressive 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 November 12, 2024, Honest reported EPS of $0 versus consensus estimate of $-0.03.
For the current fiscal year, Honest is expected to post earnings of -$0.07 per share on $372.49 million in revenues. This represents an 82.93% change in EPS on an 8.17% change in revenues. For the next fiscal year, the company is expected to earn $0.02 per share on $392.47 million in revenues. This represents a year-over-year change of 135.71% and 5.36%, respectively.
Valuation Metrics
Honest 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Honest has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
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, Honest 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 Honest passes the test. Thus, it seems as though Honest shares could have a bit more room to run in the near term.
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The Honest Company, Inc. (HNST) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Honest (HNST - Free Report) ? Shares have been on the move with the stock up 72% over the past month. The stock hit a new 52-week high of $6.77 in the previous session. Honest has gained 97% since the start of the year compared to the 11.5% move for the Zacks Consumer Discretionary sector and the 12% return for the Zacks Consumer Products - Discretionary industry.
What's Driving the Outperformance?
The stock has an impressive 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 November 12, 2024, Honest reported EPS of $0 versus consensus estimate of $-0.03.
For the current fiscal year, Honest is expected to post earnings of -$0.07 per share on $372.49 million in revenues. This represents an 82.93% change in EPS on an 8.17% change in revenues. For the next fiscal year, the company is expected to earn $0.02 per share on $392.47 million in revenues. This represents a year-over-year change of 135.71% and 5.36%, respectively.
Valuation Metrics
Honest 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Honest has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
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, Honest 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 Honest passes the test. Thus, it seems as though Honest shares could have a bit more room to run in the near term.