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Badger Meter (BMI) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Badger Meter (BMI - Free Report) closed at $246.59, marking a +1.24% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.

The stock of manufacturer of products that measure gas and water flow has risen by 0.05% in the past month, lagging the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%.

Analysts and investors alike will be keeping a close eye on the performance of Badger Meter in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.19, marking a 6.25% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $233.86 million, indicating a 7.94% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.91 per share and a revenue of $924.44 million, signifying shifts of +16.08% and +11.84%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Badger Meter. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.86% upward. As of now, Badger Meter holds a Zacks Rank of #3 (Hold).

Investors should also note Badger Meter's current valuation metrics, including its Forward P/E ratio of 49.6. For comparison, its industry has an average Forward P/E of 25.88, which means Badger Meter is trading at a premium to the group.

We can additionally observe that BMI currently boasts a PEG ratio of 3.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BMI's industry had an average PEG ratio of 3.49 as of yesterday's close.

The Instruments - Control industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 10% of over 250 industries.

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

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


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