Weave Communications, Inc. (WEAV) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Weave Communications, Inc. (WEAV)? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $14.5 in the previous session. Weave Communications, Inc. has gained 23.6% since the start of the year compared to the 31.4% move for the Zacks Computer and Technology sector and the 28.6% return for the Zacks Communication - Network 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 October 30, 2024, Weave Communications reported EPS of $0.03 versus consensus estimate of $0.For the current fiscal year, Weave Communications is expected to post earnings of $0.04 per share on $203.52 million in revenues. This represents a 133.33% change in EPS on a 19.39% change in revenues. For the next fiscal year, the company is expected to earn $0.11 per share on $237.01 million in revenues. This represents a year-over-year change of 175% and 16.45%, respectively.Valuation MetricsWeave Communications 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 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. 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.Weave Communications has a Value Score of D. 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 333.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 7.1X. 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, Weave Communications 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 Weave Communications passes the test. Thus, it seems as though Weave Communications 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 Weave Communications, Inc. (WEAV): 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