Have you been paying attention to shares of Rush Street Interactive, Inc. (RSI Quick QuoteRSI - Free Report) ? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $15.98 in the previous session. Rush Street Interactive, Inc. has gained 6.8% since the start of the year compared to the 13.1% move for the Zacks Consumer Discretionary sector and the 19.7% return for the Zacks Gaming 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 October 30, 2024, Rush Street Interactive reported EPS of $0.05 versus consensus estimate of $-0.02 while it beat the consensus revenue estimate by 11.83%.

For the current fiscal year, Rush Street Interactive is expected to post earnings of $0.51 per share on $919.8 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $1.09 per share on $1.05 billion in revenues. This represents a year-over-year change of 171.05% and 14.18%, respectively.

Valuation Metrics

Rush Street Interactive 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 these give investors a variety of ways to comb 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.

Rush Street Interactive has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 28.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.9X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 8.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Rush Street Interactive currently has a Zacks Rank of #1 (Strong 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 Rush Street Interactive passes the test. Thus, it seems as though Rush Street Interactive shares could have a bit more room to run in the near term.

How Does RSI Stack Up to the Competition?

Shares of RSI 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 Golden Entertainment, Inc. (GDEN Quick QuoteGDEN - Free Report) . GDEN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.

Earnings were strong last quarter. Golden Entertainment, Inc. beat our consensus estimate by 80%, and for the current fiscal year, GDEN is expected to post earnings of $0.84 per share on revenue of $672.02 million.

Shares of Golden Entertainment, Inc. have gained 6.1% over the past month, and currently trade at a forward P/E of 39.24X and a P/CF of 16.42X.

The Gaming industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RSI and GDEN, even beyond their own solid fundamental situation.