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In the latest trading session, Badger Meter (BMI) closed at $209.78, marking a +1.49% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.
Prior to today's trading, shares of the manufacturer of products that measure gas and water flow had lost 10.27% over the past month. This has lagged the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.
The investment community will be paying close attention to the earnings performance of Badger Meter in its upcoming release. The company is slated to reveal its earnings on January 31, 2025. It is anticipated that the company will report an EPS of $1, marking a 19.05% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $198.92 million, indicating a 9.04% increase compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Badger Meter. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Badger Meter is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Badger Meter currently has a Forward P/E ratio of 43.59. This denotes a premium relative to the industry's average Forward P/E of 22.13.
We can additionally observe that BMI currently boasts a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Instruments - Control industry held an average PEG ratio of 2.29.
The Instruments - Control industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.