Blend Labs, Inc. (BLND) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Blend Labs (BLND)? Shares have been on the move with the stock up 12.6% over the past month. The stock hit a new 52-week high of $5.53 in the previous session. Blend Labs has gained 109.8% since the start of the year compared to the 33.5% move for the Zacks Computer and Technology sector and the 42.4% 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 has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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 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 Blend Labs meets the list of requirements. Thus, it seems as though Blend Labs shares could have a bit more room to run in the near term.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 Bumble Inc. (BMBL). BMBL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Bumble Inc. beat our consensus estimate by 75%, and for the current fiscal year, BMBL is expected to post earnings of $0.86 per share on revenue of $1.07 billion.Shares of Bumble Inc. have gained 2.2% over the past month, and currently trade at a forward P/E of 2.74X and a P/CF of 16.9X.The Internet - Software industry is in the top 15% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BLND and BMBL, even beyond their own solid fundamental situation.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback 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 Blend Labs, Inc. (BLND): Free Stock Analysis Report Bumble Inc. (BMBL): 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