Blend Labs, Inc. (BLND) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Blend Labs (BLND)? Shares have been on the move with the stock up 52.7% over the past month. The stock hit a new 52-week high of $5.11 in the previous session. Blend Labs has gained 98.8% since the start of the year compared to the 28.4% move for the Zacks Computer and Technology sector and the 29.7% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has a great 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 6, 2024, Blend Labs reported EPS of $0 versus consensus estimate of $-0.02 while it beat the consensus revenue estimate by 9.4%.For the current fiscal year, Blend Labs is expected to post earnings of -$0.07 per share on $161.4 million in revenues. This represents an 82.5% change in EPS on a 2.9% change in revenues. For the next fiscal year, the company is expected to earn $0.03 per share on $190 million in revenues. This represents a year-over-year change of 142.86% and 17.72%, respectively.Valuation MetricsBlend Labs 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.Blend Labs has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Blend Labs 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 Blend Labs meets the list of requirements. Thus, it seems as though Blend Labs shares could have potential in the weeks and months to come.How Does BLND Stack Up to the Competition?Shares of BLND 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 Five9, Inc. (FIVN). FIVN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Five9, Inc. beat our consensus estimate by 15.52%, and for the current fiscal year, FIVN is expected to post earnings of $2.56 per share on revenue of $1.03 billion.Shares of Five9, Inc. have gained 26.7% over the past month, and currently trade at a forward P/E of 16.09X and a P/CF of 52.6X.The Internet - Software industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BLND and FIVN, even beyond their own solid fundamental situation.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Blend Labs, Inc. (BLND): Free Stock Analysis Report Five9, Inc. (FIVN): 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