Have you been paying attention to shares of Vishay (VPG - Free Report) ? Shares have been on the move with the stock up 13.4% over the past month. VPG hit a new 52-week high of $44.9 in the previous session. Vishay has gained 76.9% since the start of the year compared to the 10.1% move for the Zacks Computer and Technology sector and the 3.2% return for the Zacks Electronics - Miscellaneous Components 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 August 7, 2018, Vishay Precision Group reported EPS of $0.57 versus consensus estimate of $0.42.
For the current fiscal year, Vishay Precision Group is expected to post earnings of $1.93 per share on $296.44 million in revenues. This represents a 70.18% change in EPS on a 16.55% change in revenues. For the next fiscal year, the company is expected to earn $2.31 per share on $312.57 million in revenues. This represents a year-over-year change of 19.33% and 5.44%, respectively.
Vishay Precision Group may be at a 52-week high right now, but what might the future hold for VPG? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Vishay Precision Group has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 22.8X versus its peer group's average of 15.6X. Additionally, the stock has a PEG ratio of 1.15. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Vishay Precision Group 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 Vishay Precision Group passes the test. Thus, it seems as though VPG shares could have potential in the weeks and months to come.
How Does Vishay Precision Group Stack Up to the Competition?
Shares of Vishay Precision Group have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including CTS (CTS - Free Report) , Fabrinet (FN - Free Report) , and TDK (TTDKY - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VPG, even beyond its own solid fundamental situation.