Badger Meter, Inc. (BMI) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Badger Meter (BMI)? Shares have been on the move with the stock up 5% over the past month. The stock hit a new 52-week high of $239.11 in the previous session. Badger Meter has gained 49.4% since the start of the year compared to the 34.6% move for the Zacks Computer and Technology sector and the 8.9% return for the Zacks Instruments - Control 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 17, 2024, Badger Meter reported EPS of $1.08 versus consensus estimate of $1.02 while it missed the consensus revenue estimate by 0.28%.For the current fiscal year, Badger Meter is expected to post earnings of $4.19 per share on $820.32 million in revenues. This represents a 33.44% change in EPS on a 16.59% change in revenues. For the next fiscal year, the company is expected to earn $4.74 per share on $887.29 million in revenues. This represents a year-over-year change of 13.22% and 8.16%, respectively.Valuation MetricsBadger Meter 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Badger Meter has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 55.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.2X. On a trailing cash flow basis, the stock currently trades at 56.1X versus its peer group's average of 21.8X. Additionally, the stock has a PEG ratio of 2.9. 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, Badger Meter currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.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 Badger Meter passes the test. Thus, it seems as though Badger Meter shares could have potential in the weeks and months to come.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.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 Badger Meter, Inc. (BMI): 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