HashiCorp, Inc. (HCP) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of HashiCorp, Inc. (HCP)? Shares have been on the move with the stock up 1.1% over the past month. The stock hit a new 52-week high of $34.26 in the previous session. HashiCorp, Inc. has gained 44.8% since the start of the year compared to the 31.3% move for the Zacks Computer and Technology sector and the 32% 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 December 5, 2024, HashiCorp reported EPS of $0.13 versus consensus estimate of $0.05 while it beat the consensus revenue estimate by 6.09%.For the current fiscal year, HashiCorp is expected to post earnings of $0.34 per share on $674.73 million in revenues. This represents a 525% change in EPS on a 15.71% change in revenues. For the next fiscal year, the company is expected to earn $0.41 per share on $772.2 million in revenues. This represents a year-over-year change of 19.85% and 14.45%, respectively.Valuation MetricsHashiCorp 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. 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.HashiCorp has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 101.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 32.8X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 26X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, HashiCorp 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 HashiCorp passes the test. Thus, it seems as though HashiCorp shares could have potential in the weeks and months to come.How Does HCP Stack Up to the Competition?Shares of HCP 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 eGain Corporation (EGAN). EGAN has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of F.Earnings were strong last quarter. eGain Corporation beat our consensus estimate by 300%, and for the current fiscal year, EGAN is expected to post earnings of $0.23 per share on revenue of $92.13 million.Shares of eGain Corporation have gained 10.7% over the past month, and currently trade at a forward P/E of 24.83X and a P/CF of 15.82X.The Internet - Software industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HCP and EGAN, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 HashiCorp, Inc. (HCP): Free Stock Analysis Report eGain Corporation (EGAN): 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