ADMA Biologics Inc (ADMA) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Adma Biologics (ADMA)? Shares have been on the move with the stock up 37.3% over the past month. The stock hit a new 52-week high of $23.64 in the previous session. Adma Biologics has gained 397.4% since the start of the year compared to the 4.7% move for the Zacks Medical sector and the 0.7% 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 November 7, 2024, Adma Biologics reported EPS of $0.15 versus consensus estimate of $0.13 while it beat the consensus revenue estimate by 11.74%.For the current fiscal year, Adma Biologics is expected to post earnings of $0.52 per share on $425.6 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.77 per share on $492.67 million in revenues. This represents a year-over-year change of 49.68% and 15.76%, respectively.Valuation MetricsAdma Biologics 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 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.Adma Biologics has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 43.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.4X. On a trailing cash flow basis, the stock currently trades at 442.4X versus its peer group's average of 18X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Adma Biologics 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 Adma Biologics fits the bill. Thus, it seems as though Adma Biologics shares could have potential in the weeks and months to come.How Does ADMA Stack Up to the Competition?Shares of ADMA 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 Exelixis, Inc. (EXEL). EXEL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of B.Earnings were strong last quarter. Exelixis, Inc. beat our consensus estimate by 11.90%, and for the current fiscal year, EXEL is expected to post earnings of $1.99 per share on revenue of $2.16 billion.Shares of Exelixis, Inc. have gained 37.9% over the past month, and currently trade at a forward P/E of 18.87X and a P/CF of 46.99X.The Medical - Biomedical and Genetics industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ADMA and EXEL, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADMA Biologics Inc (ADMA): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks