Have you been paying attention to shares of TransAct Technologies Incorporated (TACT)? Shares have been on the move with the stock up 7.6% over the past month. The stock hit a new 52-week high of $4.9 in the previous session. TransAct Technologies has gained 11.5% since the start of the year compared to the 19.8% move for the Zacks Computer and Technology sector and the 34.8% return for the Zacks Computer - Peripheral Equipment 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 August 6, 2025, TransAct Technologies reported EPS of -$0.01 versus consensus estimate of -$0.05.
For the current fiscal year, TransAct Technologies is expected to post earnings of -$0.15 per share on $51.75 in revenues. This represents a 42.31% change in EPS on a 19.28% change in revenues. For the next fiscal year, the company is expected to earn -$0.07 per share on $55.7 in revenues. This represents a year-over-year change of 53.33% and 7.63%, respectively.
Valuation Metrics
While TransAct Technologies has moved to its 52-week high over the past few weeks, 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 has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
TransAct Technologies has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, TransAct Technologies 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 TransAct Technologies passes the test. Thus, it seems as though TransAct Technologies shares could have a bit more room to run in the near term.
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TransAct Technologies Incorporated (TACT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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