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Shares of ChromaDex (CDXC) have been strong performers lately, with the stock up 72.9% over the past month. The stock hit a new 52-week high of $6.18 in the previous session. ChromaDex has gained 301.4% since the start of the year compared to the 3.1% move for the Zacks Medical sector and the -2.3% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive 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 October 31, 2024, ChromaDex reported EPS of $0.02 versus consensus estimate of $0.01 while it beat the consensus revenue estimate by 7.93%.
Valuation Metrics
ChromaDex may be at a 52-week high right now, but what might the future hold for the stock? 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.
ChromaDex has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 246X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 17.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
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, ChromaDex 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 ChromaDex fits the bill. Thus, it seems as though ChromaDex shares could have a bit more room to run in the near term.
How Does CDXC Stack Up to the Competition?
Shares of CDXC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MiMedx Group, Inc (MDXG). MDXG has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.