Progress Software Corporation (PRGS) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Progress Software (PRGS)? Shares have been on the move with the stock up 3.4% over the past month. The stock hit a new 52-week high of $68.09 in the previous session. Progress Software has gained 24.1% since the start of the year compared to the 32% move for the Zacks Computer and Technology sector and the 18.8% return for the Zacks Computer - 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 September 24, 2024, Progress Software reported EPS of $1.26 versus consensus estimate of $1.14 while it beat the consensus revenue estimate by 1.67%.For the current fiscal year, Progress Software is expected to post earnings of $4.81 per share on $749.79 million in revenues. This represents a 10.57% change in EPS on a 7.4% change in revenues. For the next fiscal year, the company is expected to earn $5.77 per share on $929 million in revenues. This represents a year-over-year change of 19.79% and 23.9%, respectively.Valuation MetricsProgress Software 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 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.Progress Software 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 14X current fiscal year EPS estimates, which is not in-line with the peer industry average of 30.5X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 26.8X. Additionally, the stock has a PEG ratio of 7. 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, Progress Software currently has a Zacks Rank of #1 (Strong 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 Progress Software fits the bill. Thus, it seems as though Progress Software shares could have a bit more room to run in the near term.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely 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 Progress Software Corporation (PRGS): 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