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UGI Corporation (UGI) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of UGI (UGI - Free Report) ? Shares have been on the move with the stock up 1% over the past month. The stock hit a new 52-week high of $36.74 in the previous session. UGI has gained 29.3% since the start of the year compared to the 8.3% gain for the Zacks Utilities sector and the 3% return for the Zacks Utility - Gas Distribution industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2025, UGI reported EPS of $2.21 versus consensus estimate of $1.8.
For the current fiscal year, UGI is expected to post earnings of $3.13 per share on $7.81 billion in revenues. This represents a 2.29% change in EPS on a 8.36% change in revenues. For the next fiscal year, the company is expected to earn $3.23 per share on $8.81 billion in revenues. This represents a year-over-year change of 3.19% and 12.76%, respectively.
Valuation Metrics
While UGI has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
UGI has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.3X. On a trailing cash flow basis, the stock currently trades at 5.6X versus its peer group's average of 8.1X. Additionally, the stock has a PEG ratio of 2.24. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making UGI an interesting choice for value investors.
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, UGI 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 UGI passes the test. Thus, it seems as though UGI shares could still be poised for more gains ahead.
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UGI Corporation (UGI) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of UGI (UGI - Free Report) ? Shares have been on the move with the stock up 1% over the past month. The stock hit a new 52-week high of $36.74 in the previous session. UGI has gained 29.3% since the start of the year compared to the 8.3% gain for the Zacks Utilities sector and the 3% return for the Zacks Utility - Gas Distribution industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2025, UGI reported EPS of $2.21 versus consensus estimate of $1.8.
For the current fiscal year, UGI is expected to post earnings of $3.13 per share on $7.81 billion in revenues. This represents a 2.29% change in EPS on a 8.36% change in revenues. For the next fiscal year, the company is expected to earn $3.23 per share on $8.81 billion in revenues. This represents a year-over-year change of 3.19% and 12.76%, respectively.
Valuation Metrics
While UGI has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
UGI has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.3X. On a trailing cash flow basis, the stock currently trades at 5.6X versus its peer group's average of 8.1X. Additionally, the stock has a PEG ratio of 2.24. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making UGI an interesting choice for value investors.
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, UGI 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 UGI passes the test. Thus, it seems as though UGI shares could still be poised for more gains ahead.