Badger Meter (BMI) closed at $242.39 in the latest trading session, marking a -1.95% move from the prior day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.31%.
Heading into today, shares of the manufacturer of products that measure gas and water flow had lost 1.04% over the past month, lagging the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.05%.
The investment community will be closely monitoring the performance of Badger Meter in its forthcoming earnings report. The company is expected to report EPS of $1.19, up 6.25% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $233.86 million, showing a 7.94% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $924.44 million. These totals would mark changes of +16.08% and +11.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Badger Meter. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has moved 1.86% higher. Badger Meter presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Badger Meter is currently being traded at a Forward P/E ratio of 50.34. This expresses a premium compared to the average Forward P/E of 26.54 of its industry.
Investors should also note that BMI has a PEG ratio of 3.55 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Instruments - Control industry held an average PEG ratio of 3.55.
The Instruments - Control industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 207, this industry ranks in the bottom 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Badger Meter, Inc. (BMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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