Have you been paying attention to shares of CoreCard Corporation (CCRD)? Shares have been on the move with the stock up 30.8% over the past month. The stock hit a new 52-week high of $26.57 in the previous session. CoreCard Corporation has gained 14% since the start of the year compared to the 4.8% move for the Zacks Business Services sector and the 4.5% return for the Zacks Technology Services 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 May 8, 2025, CoreCard reported EPS of $0.28 versus consensus estimate of $0.16 while it beat the consensus revenue estimate by 14.3%.
For the current fiscal year, CoreCard is expected to post earnings of $1.10 per share on $66.04 million in revenues. This represents a 39.24% change in EPS on a 15.05% change in revenues.
Valuation Metrics
CoreCard 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 is due for a pullback from this level.
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). 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CoreCard has a Value Score of D. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.6X. On a trailing cash flow basis, the stock currently trades at 22.7X versus its peer group's average of 10.4X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, CoreCard 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 CoreCard fits the bill. Thus, it seems as though CoreCard shares could have potential in the weeks and months to come.
How Does CCRD Stack Up to the Competition?
Shares of CCRD 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 Qifu Technology, Inc. (QFIN). QFIN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Qifu Technology, Inc. beat our consensus estimate by 1.16%, and for the current fiscal year, QFIN is expected to post earnings of $6.93 per share on revenue of $2.44 billion.
Shares of Qifu Technology, Inc. have gained 14.7% over the past month, and currently trade at a forward P/E of 6.28X and a P/CF of 7.89X.
The Technology Services industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CCRD and QFIN, even beyond their own solid fundamental situation.
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CoreCard Corporation (CCRD): Free Stock Analysis Report Qifu Technology, Inc. (QFIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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