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Badger Meter (BMI) Declines More Than Market: Some Information for Investors

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In the latest trading session, Badger Meter (BMI - Free Report) closed at $177.38, marking a -1.53% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.35% for the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.14%.

Shares of the manufacturer of products that measure gas and water flow have depreciated by 4.11% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.71%, and the S&P 500's gain of 1.2%.

The investment community will be paying close attention to the earnings performance of Badger Meter in its upcoming release. The company is expected to report EPS of $1.14, up 9.62% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $231.89 million, indicating a 13.02% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.8 per share and a revenue of $927.86 million, signifying shifts of +13.48% and +12.26%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Badger Meter. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Badger Meter is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Badger Meter is currently being traded at a Forward P/E ratio of 37.55. This indicates a premium in contrast to its industry's Forward P/E of 23.48.

Investors should also note that BMI has a PEG ratio of 2.97 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Instruments - Control industry had an average PEG ratio of 2.15.

The Instruments - Control industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 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.

To follow BMI in the coming trading sessions, be sure to utilize Zacks.com.


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